Twitter: Why Advertising Fatigue Doesn't Matter... For Now
Signs exist that Twitter faces brand advertiser fatigue.
Other signs exist that brands are taking a pause until the 2H of the year when the social media company has better video ad products.
User growth remains the key and competition from other media products won't ultimately steal advertiser dollars if Twitter continues to grow users.
Twitter (NYSE:TWTR) hit new lows this week as analysts downgraded the stock and suggested that brand advertisers were facing fatigue with the platform. While the competition from the likes of Instagram, part of Facebook (NASDAQ:FB), and SnapChat (Private:CHAT) are a long-term concern, the advertisers will always follow user traffic.
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