Twitter has recorded a record breaking number of new subscribers thanks to the COVID-19 pandemic. However, its advertising side of the business has also taken a huge hit as advertisers pulled back on spending big amid the Black Lives Matter protests.
According to Sky News, Twitter recorded around 186 million daily users in the second quarter from 30 June, which represents an increase of 34% over last years quarter. The social media giant also grew its US mDAU (monetizable daily active users) by 24% and international mDAU by 37%.
Twitter attributes the growth seen in user numbers from April through to June to “external factors”, including lockdown restrictions placed on a number of countries and an increase in global conversation around the COVID-19 pandemic and other current events.
However, just as user numbers started to rocket, advertising on the platform took huge hit. Twitter saw “gradual, moderate recovery” throughout most of the second quarter, but that was halted in late May through to mid-June when a number of large brands and advertisers either slowed down or completely paused spending on the platform in reaction to civil unrest in the US.
As a result, second-quarter sales declined by 19% to $683.4 million compared to the previous year. Twitter is now exploring different revenue options including the possibility of offering subscriptions as a way to supplement advertising, which currently makes up more than 80% of the companies revenue,
“We have a really high bar for when we would ask consumers to pay for aspects of Twitter,” he added. “We are in the very, very early phases of exploring,” chief financial officer Ned Segal said in a statement.
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