Twitter’s latest report about its performance in Q3 of 2020 shows an increase in ad spend but a decline in the growth of total active users

Twitter has recently shared its performance report for the third quarter of 2020, and while there are some positive aspects to it, it raises some points of concern too.

In the first quarter of 2020, the monetizable Daily Active Users (mDAUs) were around 166 million. By the second quarter of 2020, 20 million more added to the platform and Twitter’s total mDAUs got around 186 million. In the Q3 of 2020, only 2 million new mDAUs joined the platform. This means that currently, there are around 187-188 million monetizable daily active users. This shows a significant decline in the growth of users, and the company does not know why it happened. Especially in the US, this kind of decline around the election time is quite concerning, because Twitter is a platform that many politicians and celebrities use quite frequently. During the times of election, this social media usually becomes a platform where discussions revolving around political parties and campaigns are mostly carried out. So, it is a little alarming that the mDAUs have seen a slight dip this time around.

However, Twitter seems to be focusing on the positive aspects of this report more. A total of 187-188 million mDAUs means a 29% YoY growth, and if we look at it from this angle, it seems good.

The company says that its efforts to make this platform easier and more accessible seem to have worked for the better. By the introduction of features around Topics, Lists, and more, the company has managed to see a 25% quarter over quarter growth in the number of engaging Topics that people can follow.

Over 70 million accounts now follow Topics by the end of Q3, which represents a 40% increase quarter over quarter.

The company has tried hard to improve the relevance of Topics and make them more informative as well as entertaining. So, this is where the company is right to rejoice in the results shown by this report.

On the other hand, the total revenue that has been generated has brought a sure, big smile on the faces of people who work at or belong to Twitter! There has a 14% YoY increase in the revenue which was estimated to be around $936 million. Ad spends by various brands during the times of coronavirus pandemic have contributed the most to this boost in revenue.

As per Twitter, advertisers and marketers increased their investments on Twitter during Q3 of 2020 because the platform provides chances to these brands to connect and engage with a large audience.

In Q2 of 2020, this ad spends and investments by advertisers were quite slow because of civil unrest in the US, but it all picked up a good pace in Q3. Hopefully, after the election, Q4 sees a major boost in both the users’ growth as well as revenue.

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