Twitter’s advertising rate has been steadily falling year-on-year and 2013 was no different, with figures showing an 18pc drop in the microblogging site’s ad rate in Q4 last year.
The company has released its annual report, which details every aspect of Twitter’s development in the past two years.
According to Quartz, Twitter’s ad revenue has been decreasing significantly since Q1 2012 by an estimated 81pc. The company has said this is only because as it became increasingly popular year-on-year, it wants to be able to appeal to a wider audience for potential ‘suggested posts’ on people’s Twitter feeds.
According to Twitter, these type of people they are aiming for are less likely to be major corporations, but rather small to medium businesses and start-ups.
“As we continue to optimise for advertiser value and the overall user experience, the cost per ad engagement may continue to decline over time, and we expect the cost per ad engagement to decline in the near term."
There have been worries that the number of people using Twitter has stalled slightly with its recent earnings report, or at least enough to make investors feel anxious. However, its earnings from advertising still showed strong figures, with the company earning US$1.49 for every 1,000 timeline views.