As the US market prepares for another day at Wall street, Twitter execs will be (or should be) preparing a strategy to reinstall the faith of its investors after it’s earnings report on Friday showed a company with no evident path to profitability.
Despite the popularity profile of some of its users, Twitter has experienced no growth in userbase while its costs to survive or cost of revenue has increased by 40.4%, meaning Twitter is spending more to generate less per user.
Twitter said it would reevaluate its core advertising strategies, such as so-called “direct response ads” where the goal is for consumers to respond right away.
But it may take more than just ad refinements for brands or agencies to commit, with most big spend advertising planned well in advance.
Twitters challenge not only includes virtually no user growth (which is currently hurting Snapchats IPO bid) but also with most advertising analytics exclusive to the US which limits its appeal to brands who sell on a global scale and have the money to spend.
In total, Twitter has lost more than $1.5 billion cumulatively since it went public in late 2013.