The plan of Twitter Inc. (NYSE: TWTR) to improve revenues from video advertising will take longer than what market analysts had anticipated. This video advertising push can be considered as a major part of the revival effort of Chief Executive Officer Jack Dorsey.
The micro-blogging giant is including more video from its Periscope application and other sources in the timelines of the users. However, on Tuesday, Twitter stated that its sales for the third quarter will be substantially lower in comparison to the analysts’ forecast, partly because ad revenues from those videos have not kicked in yet. This pushed TWTR shares lower by over 13 percent in early trading hours on Wednesday—the most since April.
According to the micro-blogging company, it will take time to unlock video ad budgets since Twitter has not yet finished developing the technology that advertisers need. The company said that it still has to build an accurate measure for the verification of who viewed the video ads, together with tools that aid advertisers select audiences and time their campaigns. Twitter also said that updates will be implemented “over the next few quarters”.
According to Monness, Crespi, Hardt & Co. analyst Hames Cakmak, “Playing catch-up for video is no easy feat, especially when you consider the resources deployed by Snapchat, Facebook and YouTube.”
Read Full article at http://www.tradecalls.org/2016/07/twitter-plunges-as-video-advertising-push-takes-longer-to-take-effect-346237/
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