Twitter appears to have dodged Facebook's mobile problem

65 percent of Twitter's ad revenue comes from mobile devices

Twitter's sign at its headquarters on Market Street in San Francisco
Twitter's sign at its headquarters on Market Street in San Francisco

Twitter has fewer users and less revenue than Facebook, but in mobile advertising Twitter appears to have dodged the problems that dragged down Facebook's stock after its public offering last year.

Sixty-five percent of Twitter's ad revenue comes from mobile devices like smartphones and tablets, the company revealed Thursday in documents filed for its initial public offering.

That's about 65 percentage points more than Facebook generated from mobile advertising when it went public last year. At the time of its IPO, Facebook said it didn't directly generate any meaningful revenue from mobile, causing big problems for its stock.

Twitter said it's experienced strong growth in mobile ad revenue because user engagement, as measured by timeline views, is higher on mobile applications than on the desktop.

"We expect this trend to continue," the company said.

It's perhaps not surprising Twitter is doing better in mobile: The 140-character limit in its tweets comes from its origins as an SMS-based messaging system.

Facebook has since improved its mobile ad business. Last quarter it said it got 41 percent of its ad revenue from mobile devices.

Twitter broadly defines timeline views as the total number of timelines requested when registered users visit Twitter, refresh a timeline or view search results while logged into its website.

There is a caveat, though. Twitter said two types of ads -- promoted accounts and promoted trends -- are seen by fewer users on mobile compared to desktop. Therefore, "advertising revenue per timeline view may be adversely impacted even if total advertising revenue continues to increase," the company said.

Twitter started putting different types of advertising content on its iOS and Android-based apps in February of last year, and has since expanded to include ads on other mobile apps.

Twitter generated total sales of about US$317 million last year, the documents show, 85 percent of which was generated through ads. Facebook reported annual sales for 2012 of roughly $5 billion.

A major chunk of Twitter's users are active on mobile: three-quarters of the company's "average monthly active users," Twitter's IPO documents said.

Sustaining its number of users on mobile, and continually growing its advertising there, will be among Twitter's challenges in the years ahead, the company said in its filing.

Twitter will list its stock under the symbol "TWTR," on either the Nasdaq Global Select Market or the New York Stock Exchange.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

4 key findings on the state of B2B marketing

The ​2016 B2B Marketing Outlook Report​ was recently published by Green Hat in conjunction with ADMA for the sixth consecutive year. It highlights the most significant trends from 2015 and shows B2B marketers what’s in store for the year ahead.

Andrew Haussegger

Co-founder and CEO, Green Hat

Why app engagement must be personalised

Research from Nielsen late last year reported Australian smartphone users over the age of 18 spend 33 hours per month in apps, and a mere four hours per month in browsers. But what does it take to actually maintain an app customers will engage with?

Rob Marston

Head of Airwave, A/NZ

Customer experience investments more vital than ever

The global commodity slump has hit Australia in the last few months. Companies that obsess over these developments might be tempted to cut spending on customer experience (CX) programs. Here's why that's a a terrible idea.

Harley Manning and Thomas McCann

Research leaders, Forrester

I hope this trickles down to job opportunities and more analytics based careers on the government.

Ale Xandra

Australian Open details data analytics improvements driving digital fan engagement

Read more

what does this article means when it refers to "elocker technologies" ? Thank you. I am not sure what this is,M

Martin W. Jordan

Adelaide Zoo deploys iBeacon technology to enhance visitor experience

Read more

Now you make creative Facebook ads

Mike Smith

Why AAMI turned to Facebook mobile and segmentation to drive brand favourability

Read more

Rob - great article. Here at Pure Oxygen Labs we could not agree more. When considering retail mobile apps deep linking is woefully unde...

Scott

Why app engagement must be personalised - Mobile strategy - CMO Australia

Read more

Project Leader?? Kim Portrate is one of the most ineffective leaders I have ever had the displeasure of meeting. She single-handedly cost...

Anonymous

Helloworld scraps CMO role

Read more

Latest Podcast

More podcasts

Sign in