Twitter (TWTR - Free Report) has made changes in its Explore Tab for iOS, making it convenient for users to sort trending tweets by topic. Sections in the newly updated Explore Tab will include News, Sports, Fun and Entertainment. Tapping on any one section displays the trending topics for the same.
Notably, the company introduced Explore in 2017 to place major news and trending topics on one platform. To monetize from the same, Twitter started serving ads on the explore tab, recently.
Twitter is highly regarded as the platform for trending topics. The latest update is aimed at enhancing user engagement and not making users sit through topics, which they are not interested in. The feature is currently available in the United States and is expected to be rolled out in other locations gradually.
Twitter’s Initiatives to Boost Ad Dollars
Twitter’s initiative to add new features to attract users to its platform and drive engagement levels has been a key catalyst. In the last-reported quarter (third-quarter 2018), average Daily Active Users (DAUs) increased 9% year over year.
Features like “audio-only broadcast” and new floating compose button on its app, which enable one-hand scrolling and tweet composing, are expected to drive user engagement.
Twitter signed 11 new live-streaming, highlight, Amplify, and video-on-demand agreements (out of which eight are from international markets) in the third quarter including the likes of Activision Blizzard (ATVI - Free Report) and Adidas. Notably, live-streaming events are available in more than 40 languages.
This aggressive push into the video streaming segment is expected to increase Twitter’s ad dollars. Notably, video ads accounted for more than half of ad revenues and remained Twitter’s fastest-growing ad format. Ad engagements increased 50% year over year. Robust growth was witnessed in Video Website Cards and Video App Cards in the last-reported quarter.
Moreover, enhanced features and improving security of the platform are attracting advertisers. In the third quarter, advertising revenues accounted for almost 86% of total revenues and increased 29% year over year.
Notably, Twitter reported that “spammy and suspicious accounts” accounted for less than 5% of Monthly Active User (MAU) base in the last-reported quarter.
Twitter has been ramping up its efforts to curb malicious activities on the platform. Following the footsteps of Alphabet (GOOGL - Free Report) and Facebook (FB - Free Report) , it removed several Alex Jones and Infowars accounts, which were found spreading misinformation. Moreover, the company is not only improving the sign-up process but also auditing existing accounts for signs of automated sign-up.
Twitter currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Twitter, Inc. Price and Consensus