More than half the year is gone. As July came to an end, the social media platforms came out with their Q2 results. How did Facebook, Twitter and LinkedIn do this quarter?
Twitter: Not in good health
Twitter, which is in the midst of a leadership change as ex-CEO Dick Costolo left, had a worrisome quarter. While Twitter’s Q2 revenue rose by 61 per cent year-over-year as it reached USD 502 million, its user growth has slowed. The monthly average users were 304 million for the second quarter, compared to 302 million in the previous quarter.
“The product initiatives we’ve [introduced] like instant timelines and logged out experiences have not yet had meaningful impact on growing our audience or participation. This is unacceptable and we’re not happy about it,” said Jack Dorsey, interim CEO of Twitter.
Facebook: It’s all about mobile and videos
Facebook, on the other hand, had what analysts call a good quarter. The social media platform generated USD 4 billion in revenue and USD 1.3 billion in free cash flow in this quarter.
Mobile advertising revenue for Facebook which reported financial results for the second quarter of 2015 was approximately 76 per cent of advertising revenue.
In June, approximately 1.31 billion people accessed Facebook on mobile devices, up 23 per cent from last year. “Mobile remains the key driver of our growth,” Dave Wehner, CFO, Facebook said.
It was interesting to note that, after North America, APAC showed a strong growth in ad revenue for Facebook at 48 per cent this quarter. Lately, the social network is focusing on the fast growing market in APAC, by introducing tools such as the Creative Accelerator, to help brands in the region.
It also came as no surprise that Facebook is continuing to focus on videos – which it has been promoting to brands to engage with increasingly.
LinkedIn: Ads paying off
LinkedIn also showed increase in its ad revenue. Its marketing solutions revenue reached USD 140 million in the second quarter of 2015, rising by 32 per cent compared to the same quarter last year. Revenue for Q2 for the professional networking platform was USD 712 million, an increase of 33 per cent compared to the same quarter last year.
Back here, in the DMA office, we are busy preparing for our Socialathon India event to be held on August 7 . We hope you have booked the dates and look forward to seeing you there!