Twitter Struggles To Attract Advertisers Despite Increasing Revenue

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Source: Shawn Campbell

Source: Shawn Campbell

Twitter’s ad revenue and engagement may be going up, but Twitter’s advertising platform is struggling to maintain growth as they see fewer advertisers using their service to promote their content.

According to Twitter’s latest shareholder letter, ad revenue grew 18 percent year-over-year, reaching $535 million in Q2. Similarly, ad engagement shot up 226 percent and the cost per engagement dropped by 64 percent.

That’s the good news. The bad news is Twitter is “seeing a continuation of the trends discussed last quarter with less overall advertiser demand than expected. This is reflected in both our Q2 performance and Q3 outlook.

The social media giant says there are two reasons their number of advertisers is dwindling while earnings are growing:

First, there is increased competition for social marketing budgets, which requires us to continuously raise the quality bar on the advertising solutions we bring to market.

Second, while we have worked to drive higher ROI for advertisers (by leveraging our current user base, ad formats and innovations in targeting, creative and measurement), we’re still priced at a premium CPE relative to others. This has proven to be a headwind in growing Twitter’s share of overall social budgets and in our ability to grow faster in both video and performance advertising.

Ultimately, Twitter is going through growing pains and it is reflected by the loss of advertisers. While Twitter is charging more than most social platforms, it is struggling to maintain its active user base who have been largely unimpressed by newer features and changes to the interface on mobile and desktop.

Instead, advertisers are following users who are turning to platforms like Snapchat, which already has more active daily users than Twitter.

The company announced several new ideas to help recapture their audience’s attention and incentivize advertisers to use their service. Among them, it showed off a “new look and feel” to its marketing efforts that emphasize that Twitter is “where you go to see what’s happening everywhere in the world right now.”

Twitter is also heavily investing into live sports streaming with agreements to stream games from all the biggest sports leagues in the U.S., including the NFL, MLB, and NBA. The only question is if these decisions will reignite the spark that originally made Twitter one of the most popular social networks in the world.

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Facebook Live Is Going Big With 4 New Features

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Facebook Live is going to become even bigger in the coming weeks. Facebook has been heavily pushing their live video streaming service and now they have announced several new features that will expand how users can livestream their lives.

Some of the new features are already available and the rest will be rolling out in the next few weeks. Let’s go through what you can expect to see from Facebook Live in the near future:

Longer Streams

Facebook Live users have been limited to 90-minute streams in most circumstances since the launch of the service, but Facebook is extending that limit substantially. Now, broadcasters are able to stream continuously for up to four hours when using the Facebook app or the Live API. If you desire, you can also stream continuously indefinitely, but your followers won’t receive notifications and there is no archive of your stream. You can’t share it with followers later or rewind.

Hide Reactions & Comments

Comments and live reactions can sometimes turn into a mess when you have a large enough audience. It can be hard to weed out spammers and trolls on the fly, but Facebook is making it easier to keep things under control by allowing you to hide reactions and comments by enabling a video-only mode. All broadcasters have to do is swipe right on their screen. You can always swipe left to re-enable them.

Full-Screen

Viewers don’t have to watch your streams from the small box in their feed anymore. Finally, you can watch live broadcasts full-screen from any iOS device. Unfortunately, Android users will have to wait until this summer to be able to view streams full-screen.

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Geogating

Want to make your broadcast an exclusive for a specific demographic? Now, you can limit your audience to specific users based on criteria like location, age, and gender. Facebook calls the feature “geogating”, but it basically allows you to set limits on who can see your streams. Currently, the limits are fairly broad, but they may become more refined in the future.

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Twitter Tells Users When You Are Most Likely To Respond

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Social media is one of the quickest and easiest ways for a customer to reach a business, which is why sites likes Twitter and Facebook are fast becoming de facto customer service platforms. Users expect to be able to reach a business and have their problems solved through social media and it is important for businesses to be available.

Twitter has recognized its power as a customer service platform and has been testing features to help customer’s take advantage of this. One such feature was released this week which shows users when brands and businesses are most likely to respond on Twitter.

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The new “most responsive feature” is starting to pop up on profile pages for pages like Apple Support, but also on brand pages like Medium’s profile on both desktop and mobile.

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Little is known about the feature since it was first spotted this morning. Twitter hasn’t said whether the feature is just a small test or if you can expect to see it spread in the coming weeks and there is no indication of whether businesses have any control over the listing.

Ultimately, the new feature is just a test to keep an eye on. Not only does it provide a potential way to improve customer interactions with brands, but it signals Twitter’s intentions to highlight the customer service potential of their platform. You can likely expect to see similar features and information for brands that offer customer service through Twitter in the future.

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Reach on Facebook May be Down But Video Is Overperforming

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If you’re a business that publishes content on Facebook, you have good reason to be frustrated. This week, the company announced they’d be de-emphasizing publisher-posted content in users’ news feeds in order to better highlight posts from friends and family, which means it will be even more difficult to break through to a wider audience. But, new data from SocialFlow may show there is still a way to reach tons of users through Facebook.

According to SocialFlow’s report, video content shared across Facebook is outperforming almost any other type of content when it comes to content reach. The social analytics company shares more than half a million stories each month to Facebook and other social networks on behalf of publishers.

SocialFlow recently analyzed 30 days of video content to gauge the total reach, likes, and shares in comparison to other types of content. What they found showed that while other types of content are drastically dropping in reach across the network, video is actually going up.

SocialFlow presented their findings via Facebook Live this week, showing that video made up just 0.9 percent of all posts but accounted for 7.15 percent of reach, 5.2 percent of likes, and 11.1 percent of shares. Of course, the company cautioned that the results don’t represent all publishers, it may mean some are actually seeing even better performance.

“It’s clear that media companies are increasingly turning to video to maximize their reach and audience engagement,” SocialFlow CEO Jim Anderson told Adweek. “We’ve heard plenty of anecdotal reports of strong video performance, and now we have the data to back up the anecdotes.”

The data also excluded Facebook Live video, which is being strongly promoted by the social network – Facebook has even started paying some publishers large amounts of money to encourage use of the format.  Anderson also said he “wouldn’t be surprised” to see video posts grow to account for 5 to 10 percent of total post volume within the next six to 12 months.

The findings show that while many brands and advertisers have been slow to take up Facebook Video, those that have are seeing promising results that suggest it may be the next big thing for publishers stymied by dropping reach through traditional content formats.

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Twitter Extends Videos to 140 Seconds

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The magic number for Twitter appears to be 140. The social network built its platform around 140 character tweets, and now it is taking a similar approach with its video service by limiting videos to 140 seconds, according to a recent announcement.

Twitter has allowed users to share videos on its network since last year, but the videos have been limited to 30-seconds maximum until now. The only exception was for a select number of advertisers who could post videos up to 10 minutes long. Now, users are getting a taste of that creative freedom with videos that go slightly beyond 2 minutes long.

The change will also be having an impact on the Twitter-owned Vine, which is known for looping 6-second-long micro-videos. Now, Vines can be used to preview or promote twitter videos which can be viewed by clicking the new “Watch more” button.

According to the company’s announcement, video tweets have gone up by over 50% since the start of this year and these new changes will allow more flexibility for users.

Along with this news, Twitter also announced that iOS and Android users are getting a new viewing mode which shows Vines or Twitter videos in a full-screen mode along with suggested videos.

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Pinterest Announces 3 New Ways For Brands To Connect With Users

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Pinterest may be one of the leading social platforms around, but its forays into advertising have been slow. The company took its time testing “Promoted Pins” to make sure they didn’t negatively impact users. When the ads finally were rolled out to all, they were also incredibly simple, with limited targeting and customization.

The company is finally expanding its ad platform with new targeting features that will give advertisers entirely new ways to connect with Pinterest’s more than 100 million monthly active users, according to a recent announcement.

Now, you can focus your ad efforts to make sure you are only targeting users who are likely to be interested in your brand and your products, improving the ad experience for both users and advertisers at the same time.

Customer List Targeting

Much like Facebook’s Custom Audiences, Pinterest’s custom list targeting is designed to help you connect with your existing customers on the social image board by targeting users from a list of your customers using email addresses or mobile ad IDs. Pinterest will then match your list with its own user database so you can serve them ads directly.

Visitor Retargeting

Retargeting is a great way to keep potentially interested visitors to your site engaged with your company even if they don’t initially make a purchase. With Pinterest’s visitor retargeting option, you can tag users that come to your site and serve them ads that are particularly suited to their interests and needs.

According to Pinterest, visitor retargeting has increased click-through rates (CTR) by as much as 3x for those who were granted early access to the option.

To use visitor retargeting, you will have to add Pinterest’s conversion tag to your site, which will allow you to tag or exclude users who have:

  • Landed on your homepage
  • Signed up for something
  • Added an item to their cart
  • Checked out

Lookalike Targeting

You might be familiar with this targeting option thanks to the version of it in use at Facebook called Lookalike Audiences. Lookalike targeting lets you reach out to groups of people based on their behaviors and interests specifically based on the activities of your customers.

Pinterest reports that this option increased CTRs for early-access users by up to 65% and increased reach for ads by nearly 30x.

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Instagram Rolls Out Its Algorithmic Timeline Next Month

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The algorithmic timeline is starting to take over.

For the longest time, the algorithmic timeline was a defining characteristic of Facebook, while sites like Twitter and Instagram used chronologic timelines to keep people up to date as things happened in real time. However, Twitter made the controversial decision to implement an algorithmic timeline earlier this year and Instagram has officially announced they will be making the change next month.

Of course, this isn’t a total surprise. The Facebook-owned platform was bound to implement the algorithmic timeline sooner or later. In March, Instagram started testing an algorithmic which sorts user’s feed based on their interests and activity instead of sorting feeds by the most recent posts.

The announcement of the algorithm tests prompted a collective panic attack among many who bemoaned the loss of one of Instagram’s defining features and worried their posts would be seen by fewer people. However, Instagram says switching to an algorithmic timeline will actually increase exposure for posts, especially from influencers and brands.

According to the photo-and-video social platform, people miss 70% of the posts from people they follow when they use a chronologic timeline. The company says their tests showed the new timeline increases exposure and engagement, which is a win-win for users and brands.

“We found that people are liking photos more, commenting more and generally engaging with the community in a more active way,” Instagram wrote in a company blog post announcing the official rollout.

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Learn The ABCs of Making Visual Ads That Work [Infographic]

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It is no secret that visual content is more engaging to readers. Whether you use infographics, social media images, video content, or just creating ads that are visually attractive, users will always react more to content that is more than just text on a screen.

But, just because you are using more visuals in your content and doesn’t mean they automatically work. Aesthetically pleasing content can be a great way to engage users, but you can still lose a huge amount of visitors if your content isn’t compelling and exciting.

To help you guarantee your visual ads are truly visually compelling and engaging, Bannersnack recently shared an infographic breaking down everything you need to know about visual ad creation. If you want to guarantee your visual ads are killing it every time, check out the infographic below or at Bannersnack.

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Facebook Tells Advertisers How To Make The Best Video Ads

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Facebook Video has quickly grown to rival YouTube, so it is unsurprising that video ads have also become a major part of Facebook’s advertising platform. But, as more and more companies share their ads on Facebook, it is becoming significantly more difficult to stand out.

To help companies make the best ads possible for their platform and best engage their audience, Facebook took it upon itself to test out their video ads to see what is best in the eyes of consumers.

Facebook showed 965 video ads targeted to the United States and Europe to a panel of consumers in a way that mimicked Facebook News Feed on mobile and asked the participants to evaluate each ad based on four factors: first impressions, branding, messaging, and video features.

Let’s break down the biggest findings of the report:

Engage Users Fast Without Audio

The majority of marketers aren’t taking how users watch videos into account when they create their ads, according to the report. Despite the fact that videos play silently in the News Feed by default and many users watch without sound entirely, only 24% of the ads were comprehensible without ads.

Additionally, only 23% of these ads included brand messaging that was easy to understand within the first 10 seconds of video and less than half (46%) featured recognizable brand links.

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Brands that ensured their ads quickly established their messaging and were understandable without sound were drastically more popular among respondents than those who didn’t.

Keep Your Messaging Clear To Spark Engagement

Videos that were intended to create a conversation and succinctly communicated a brands’ message were also more liked by participants in the study.

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For more insights from Facebook’s study, read the report here.

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