Twitter ads increase while rates tumble 18%

The good news for Twitter is that the number of ads showing up on the social media network have continued to climb. That’s great, right? Well, yes and no.

Twitter ad rates continue to plummet. Rates are down 18% this quarter, were down 67% in 2013 and are down 81% since 2012. Twitter says this is because of the company’s increasing supply of inventory for advertisers.

In its annual report to the SEC, Twitter says that their big issue is competing for advertising dollars.

“The substantial majority of our revenue is generated from the sale of advertising services, and we compete against online and mobile businesses and traditional media outlets, such as television, radio and print, for spending on advertising,” they said.

“We believe that our ability to compete effectively for advertiser spend depends upon many factors, including the size and composition of our user base; our ad targeting capabilities; the timing and market acceptance of our advertising services; our marketing and selling efforts; the return our advertisers receive from our advertising services; and our reputation and the strength of our brand.” Get expert Digital Marketing right in Montrose, CO.

The good news is that the smaller ad rates will make Twitter more appealing to smaller businesses who would like some exposure, but don’t have huge ad budgets.