Thursday July 22, 2021
No iPhone effect yet
Twitter’s advertising business is booming
Analysts had expected that the new tracking restrictions on iPhones on social media would hit the advertising office. But there is still no sign of this on Twitter – on the contrary.
The advertising business is booming on Twitter. In the second quarter, the advertising revenue increased compared to the same period last year by 87 percent to 1.05 billion dollars, as the network announced on Thursday after the US market closed. The group turnover climbed by 74 percent to 1.19 billion dollars. With both numbers, the San Francisco-based company clearly exceeded market expectations. Analysts had expected a good billion dollars. The share jumped in after-hours US trading at times by around eight percent.
Twitter attributes the positive development to better target group orientation in the advertising business, advertising can now be better geared towards individual users. In addition, the stricter data protection rules for the latest iPhone operating system had so far had less of an impact on advertising revenues than expected. Analysts had expected that the Apple update could lead to less data for personalized advertising. After all, iPhone users must now consent to the so-called tracking of online activities. To assess the long-term consequences of the changes introduced by Apple in April, it is still too early, Twitter admitted.
For the months from April to June, the company reported 206 million users who received advertising and thus generated sales for the group. In the US, however, the company had to accept a decrease of one million users compared to the previous quarter. Twitter attributes this to a lower volume of news on the home market than in the three months before. Twitter shares rose after hours by 7 percent.
Bottom line, Twitter reportedly earned $ 65.65 million after a loss of $ 1.38 billion a year earlier, which at the time was mainly due to a tax provision of nearly $ 1.1 billion.
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