Twitter Is Still Struggling to Attract Advertisers

At a recent investor conference, Twitter (NYSE: TWTR) CFO Ned Segal twice noted the company's ad business is "demand constrained." In other words, Twitter's struggling to grow ad revenue because marketers aren't willing to spend more on its products.

One of its biggest competitors in digital advertising, Facebook (NASDAQ: FB), has noted that it has the opposite problem. The supply of ads on Facebook doesn't have much room to grow. Nonetheless, advertisers continue to increase their budgets with Facebook while ignoring Twitter.

When Segal spoke with Twitter's sales team, he found there are two problems Twitter needs to solve for advertisers. Bigger advertisers want more clear-cut return on investment (ROI) measurements. Smaller advertisers need better self-serve technology.

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Source: Fool.com