Twitter Making Moves

Twitter

Twitter is making moves after reporting an increase in revenue and additional users for the second quarter of the year. Although the social networking service is anticipating an increase for the third quarter, Twitter is considering new techniques to access more users, as well as make the experience more unique.

Twitter reported their second quarter revenue was $312 million, bringing an increase of $0.02 per share. According to Tech Crunch Magazine, Twitter revenue is up 124 percent from a year ago and up from the $250 million reported for the First Quarter of 2014. Network users have also increased during this time to 271 million active users per month, which was up from the 255 million users reported during the First Quarter. In all, users have increased by 24 percent since last year.

The increase in second quarter revenue and monthly active users was attributed to Twitter’s mobile application. The app saw an increase of 29 percent in usage, and 81 percent of its ad revenue came from mobile advertising.

According to Jeremy C. Owens of San Jose Mercury News, these increases can be attributed to recent World Cup events. Owen stated “user growth” has been a concern over Twitter’s stock price, but Twitter had reported a record usage of 672 million tweets related to World Cup events. Owen also pointed out the World Cup happened to take place during the second quarter with the final World Cup game having over 618 million tweets per minute.

Despite World cup events, Twitter had already made other moves within their executive management department earlier this year. This included the replacement of their chief operating officer and chief financial officer. Although these changes are considerable factors that may have led to improved revenue, Twitter also made the move of acquiring an image search technology company called Madbits.

An announcement was posted on July 28 via Madbits.com, but Catherine Shu of Tech World had stated that Twitter officials had been looking for ways to improve image features. Shu stated the acquisition of this start-up company should help improve features related to the company’s e-commerce.

Forbes also mentioned a move the social networking website is considering in regards to usage and revenue. Jeff Bercovici stated in his report that CEO Dick Costolo is aware ‘Twitter is everywhere.” Although there is an audience outside of twitter who are “logged out,” Costolo believes there is a way to reach them in order to “reach the largest audience in the world.” Costolo is keeping in mind how “frequently tremendous signals” can help his corporation engage more users. Bercovici adds that Costolo has not ruled out using an algorithm timeline for ad placement and tweets which is similar to what Facebook uses for their own “Newsfeed.” Costolo believes this may be able to bridge the gap from people who sign up and start to receive important information.

Although Twitter is making moves, the company may need to consider what exactly draws users to their service in the first place, especially in regards to their “reverse-chronological organization,” as Bercovici put it. Not only is the concept of collecting followers over time unique to Twitter, but so is the placement of tweets, such as those which users follow, those found in the “Discovery” section, and those which are often re-tweeted. Even if users are simply using the service to send out tweets, engage with others, or read tweets of those accounts they follow, Twitter may need to concentrate on how to connect distant viewers with how to be more user-friendly.

Opinion By Liz Pimentel

Other Recommended Reading about Twitter:
Twitter is Making News and Important Changes
Twitter and Facebook Compete: Do Users Win?

Sources:
Tech Crunch (Profit Report)
San Jose Mercury News
Tech Crunch (Madbits)
Forbes

 

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