12 Sep Twitter Makes Two Changes to Increase Revenue | Social You Should Know
Snapchat is reportedly on its way to its first billion-dollar year. Meanwhile, the last couple of earnings reports for Twitter can best be described as flat. Flat user growth and flat revenue growth. This week, Twitter made two (more) changes to try to increase revenue. All that, and more, in this week’s Social You Should Know.
Facebook Will Punish Advertisers with Slow Mobile Page Loads
Remember when Google started punishing brands that didn’t have mobile optimized websites by pushing them lower in the search results? Facebook is going the same route, punishing advertisers who link to slowly loading mobile web pages by not showing their ads in the first place. This is the latest step by Facebook to improve the mobile experience. Prior efforts include Instant Articles and Canvas Ads. Facebook is, wisely, realizing that a great user experience depends a lot on the ability to get to content quickly. Smart moves by Facebook here.
One Billion Dollars is Snapchat’s 2017 Goal, and It’s Within Reach
Our friends at eMarketer are predicting explosive, Dr. Evil worthy, revenue growth for Snapchat. They estimate about $367M in 2016 (up from about $50M in 2015), rising to $935M in 2017. Nearly all of that money (95%) will come from U.S. advertisers with international diversification kicking in by 2018. The $1B target is what Snapchat estimated for 2017 in a leaked presentation deck. Snapchat has a much bigger audience (31.6% of social network users) than ad dollars (2.3%). By these estimates, that is set to change quickly.
Twitter Makes It Easier for Brands to Pay; And Creators to Get Paid
Two announcements came from Twitter this week. Brands can now sponsor a series of Periscope broadcasts which will allow brands to be shown as the sponsor, create highlight videos and more. The first brands out of the gates are a bank and an alcohol brand, Chase and Grey Goose. They will sponsor retired tennis player Andy Roddick as he Periscopes from the US Open. Earlier this week, Twitter joined other social networks in allowing high profile accounts to take 70% of the revenue from their video tweets. The catch: They have to click a box allowing Twitter to show pre-roll before their videos.
And finally, if you’re a big #hashtag fan, you can now start using them on LinkedIn too. I won’t mention that most people use them incorrectly, #ormaybeiwill. ←irony…