Twitter says it is testing a new ad format and placement on its platform. Twitter Revenue Product Lead on Wednesday Bruce Falk said Twitter will begin showing ads on mobile devices inside conversation threads after the first, third and eighth replies. Although the company declined to confirm that the change would be permanent, it said it would experiment with the formula to best determine the insertion points and layout that makes the most sense. Twitter also said it would consider displaying ads that some creators choose instead to force them to accept ads in their threads. In that case, creators will also see a portion of ad revenue, Twitter said.
company historically Is struggled To to grow Its user base is in significant numbers, which means it will have to be more creative with maximizing the revenue it can generate from its existing users. Over the past year or two, it has brought a flood of new products, such as audio chat rooms, ticketed events, creator tools, subscriptions, virtual tipping, and more. Over time, Twitter is looking to deliver on its promise to investors that it will be able to grow its revenue from $3.7 billion in 2020 to $7.5 billion or more in 2023, and grow its user base to 315 million monetizable daily users. will increase to
While most of its new products are in the early stages of testing, Twitter hasn’t suffered any setbacks just yet. For example, third-party data indicates that Twitter’s new creator platform, recently called Super Follow, generated just $6,000 in its first two weeks in the US and Canada, or maybe a little more. ($12,400 over the course of 17 days in September, according to another firm’s analysis.) Whatever the numbers may be closer to the truth, it’s clear that demand for Creator subscriptions hasn’t slowed yet.
Meanwhile, Twitter hasn’t rolled out its new premium product yet Twitter Blue Membership, the product in its largest markets including the US, includes a feature that is similar to Twitter offering users the desired “Edit Tweet” button – an “undo” option to quickly catch typos.
But despite the introduction of all these new features, Twitter continues to generate the majority of its revenue through ads. In July, Twitter beat Wall Street estimates Income Pulling in $1.05 billion in ad revenue in the quarter — a move that the company attributed to the improved effectiveness of its ads, where it introduced 2,500 new topic categories for better targeting.
Similarly, Twitter plans to make in-conversation ads contextually relevant, which is being discussed.
“We see a huge opportunity to build an advertising offering that creates value and aligns incentives for creators and advertisers,” Falk said. Announcement shared on twitter. “As we experiment with this format over the coming months, we will focus on understanding how it performs and how it affects people and the conversations around it. We will look at different frequencies, layouts, contextual will test relevant ads, different insertion points, etc. And we’ll test our learnings and find out if it’s something we want to make permanent. We’re excited to try it out for our advertisers and we’ll find that Curious to know how this tweet can open doors to additional opportunities to reward writers and creators,” he said.
That last bit is referencing a proposed revenue share with creators whose content leads to long threads where ad placement makes sense. When tweets go viral on the platform, users can often scroll down across multiple screens to read more of users’ reactions. This could allow Twitter to put more ads not only near the top of the thread, as is now proposed, but at the bottom of the thread. But monetizing viral tweets like this can affect Twitter’s content and culture. Twitter is already a place that rewards one type of demonstrative type of user – such as those who post snarks, jokes, angry tweets and other emotional content; Linking the “virality” of tweets to creator revenue could further distance Twitter from the genuine, thoughtful conversations the company claims it wants to host.
However, an increased ad load on Twitter could allow Twitter to offer a different product for those who hate ads enough to pay for an ad-free experience. While currently, Twitter Blue does not offer an ad-blocking function, apps often provide users with ways to opt out of ads by paying instead. It could probably be bundled into Twitter Blue, or even a standalone purchase. (Twitter hasn’t said it’s under consideration, to be clear. When asked, Twitter said it’s “not part of” its plans at the moment.)
While sometimes necessary, there is a monetization tool that many people do not like and are sensitive to. Users complain when Twitter juices up their ads for quarters or years at the end, when they start showing up every few tweets in the timeline. It’s possible that a fierce enough reaction from users to these new ads — or other, negative effects on consumer behavior on the platform — could encourage Twitter to reconsider this test.
But it’s more likely that this change will move forward once Twitter has the right formula for layout, placement, and contextual targeting, given the company’s need to grow revenue. Already, Twitter failed to make its “Stories” product work, which could have provided a new section on the site for running ads. But the stories didn’t get enough user acceptance to make the continued investment worthwhile.
This leaves Twitter looking for other ways to monetize through ads. Showing more ads in more places seems to be the current answer.