Twitter Now Makes Over Half its Revenue From Video Ads: Q1 Report
Twitter announced its Q1 2018 earnings yesterday, and for once the little blue bird is flying high. It generated $575 million in advertising revenue during the quarter and, in a surprise, announced that over half that came from video ads.
The company makes money from in-stream pre-roll and mid-roll ads, as well as FirstView, Video Website Cards, and Video App Cards. Video was the company's fastest growing ad format in Q1. In a letter to shareholders, the company said value for advertisers increased in Q1 thanks to better ad engagement, more attractive product features, and improved ad relevance. Click-through rates (CTR) were up thanks to more engaging video offerings such as Video Website Cards and Video App Cards.
Half of the company's ad revenue ($288 million) came from the U.S., while half ($287 million) came from other countries. That $575 million figure showed a 21 percent growth from the year before. However, international sales were really booming, up 52 percent from the year before.
Total revenue for the quarter was $665 million, which was also a 21 percent increase from Q1 2017. That figure was almost evenly split between U.S. and international markets.
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