WASHINGTON, July 22 (Reuters Breakingviews) – Twitter’s (TWTR.N) 74% jump in second-quarter revenue to almost $1.2 billion portends a soaring online ad market. Marketing spending in the United States is expected to increase by 15% this year to $251 billion, with more of that online, according to WPP’s Group M. Likewise, rival Snap (SNAP.N) doubled its revenue over the same period.
Twitter does have the advantage of favorable comparisons. The online ad slump hit the hardest in the second quarter of 2020 when revenue fell almost 20% for Twitter though monetizable daily active users grew by 34% read more . That latter metric was down to a pace of 11% growth in the three months ending in June. But the company is making more money off of the tweeps it has: average daily U.S. users were up by only 1 million to 37 million but revenue increased almost 80%.
Twitter has also been expanding ways to make money off its platform. It’s trying out charging admission for certain features and content subscriptions. And while it’s criticized for spreading online misinformation, it’s not feeling the Washington antitrust heat of its rivals read more . In relative terms that should also keep Twitter aloft. (By Gina Chon)