Twitter Will Soon Be Monetizing On The Logged Out Users/Visitors
Twitter finds another way to grow its ad revenue by monetizing on the regular visitors that do not have an account on the social media network.
Twitter Inc. is still having a hard time in bringing new users on its platform. Furthermore, the user growth has been stalled as well which is worrying the investors and shareholders of the company. Hence with little or no user growth at all in the past couple of months, the social media website might again change its strategy to do business and survive in the industry. It is well known that the social media network is not currently on the list of social media addicts therefore no user growth can haunt the business sooner or later.
In last quarter, the company posted poor results and managed to add only 3 million new users. Overall, only 5 million users have been added in the last six months. The company is currently working to get advertisers on its platform and generating major chunk of its revenues through advertising, which is the strategy of Facebook as well. However, it cannot compete with the massive 1.53 billion user base.
The social media network stated that it has almost hundreds of millions people that are coming on its website such as the homepage, search results for a particular news or hash tag, or individual profiles, regardless if they own an account or not. And so far, the company has not thought to monetize on these activities. In the third quarter earnings call conference a few weeks ago, the new COO of the company Adam Bain revealed that his company would target and monetize those users as soon as possible. He told the investors that Twitter will soon be running a pilot in the fourth quarter to begin monetization on the logged out Twitter visitors.
Facebook is known for generating major revenues through advertisements due to its massive user base however it might not be possible with the user base that Twitter has and on top of it, no significant user growth. Therefore, it will have to find other ways to grow its ad revenue. According to a source which quoted the CFO of the company, Anthony Noto, stated “there's room to increase its ad load up to three times its current rate, but the company seems hesitant to do so. Last quarter, ad revenue increased 13% sequentially -- 1% from user growth, and 12% from increased ad prices and engagements. The latter factor benefited significantly from auto-play video ads”
It will be a huge boost for the company if it successfully monetizes the logged out users. The new strategy has to work so that the company sustains its business in the industry.