Twitter's latest quarter report showed dismal figures for the platforms advertising revenue stream, another statistic to add to their long list of dismal figures.
Just to throw my cards on the table, Twitter is my favourite social platform as a consumer, I'm Twitter every day of the week.
However, the biggest problem Twitter face is the feature that makes Twitter users (like myself) fall in love with the platform, their timeline.
Despite their efforts to mask themselves as a 'best content first' timeline platform in recent times, they still remain very much a 'most recent content first' timeline platform.
Three Things You Need To Know To Understand Why Twitter Is In Crisis:
1. Most recent content first timeline based platforms (like Twitter) don't heavily reward innovative organic content in the same way. Because of this social media reports often show dismal impression figures for Twitter when compared to Facebook, the platform is increasingly treated as an afterthought by marketers.
2. Advertisers would prefer for their promoted content to appear among 'good content'. Not only is this preferable for vanity reasons, it is also shown that scroll speeds at the 'top end' of Facebook are slower, and click through rates are higher. Twitter's platform makes it impossible to guarantee this to marketers.
3. Twitter's users do not want change to the platform, any changes towards a best content first timeline has lost Twitter a bunch of losers, and when user growth is only growing 1% quarter on quarter (and slowing) you can't afford to upset current users.
Twitter are in a viscous circle between 1/2 and 3, it's a tough one. My guess? They'll open up a new revenue stream and let their time advertising revenue stream dwindle. It wouldn't be a bad bet to say that their eggs are heading towards the Periscope and live video basket.
Today it announced its year-over-year revenue growth was just 19.9%, up from $502 million to $602 million. That’s down from its 60.93% revenue growth rate a year ago and 124.12% rate two years ago.