CEO Shuffle has Put Twitter under Pressure from Advertisers

Published By : 15 Jun 2015 | Published By : QYRESEARCH

With Dick Costolo putting down his papers amid increasing pressure from investors to expand the user base and improve on direct response advertising, the next chief executive officer will have a tough job to pacify the investors. Though Jack Dorsey is working as an interim CEO presently, industry insiders have mentioned that Adam Bain, who is the president and head of revenue, is among the favourites to take the position of CEO. 

Direct response advertising is expected to be the most profitable on Twitter as the ads displayed through direct advertising prompts visitors to take an action such as purchasing  a product or signing up for a website. The microblogging website is expected to generate huge revenue by improving direct response advertising. As the president of Twitter, Bain has helped to grow the advertising platform. Also, he has kept good relations with advertisers. Investors are positive that his knowledge about the media business will help Twitter to meet the demands of the advertisers. 

Industry analysts have mentioned that the recent development will force Twitter to urgently work on improving advertising on the website. Also, this will help to make the website user friendly to attract more visitors. Advertisers are also demanding more information about their consumers through advertising on Twitter. Twitter has not yet commented anything on the recent development.

The microblogging site has a number of technical challenges to face. Due to the fast-moving news scrolls, it is unlikely for a visitor to click on an ad. Other websites such as Instagram and Facebook display photos and videos effectively to the users, which increases the chances of clicks. In April this year, the rates of direct response ads were slashed after they failed to deliver good response. This has affected the company’s revenue forecast for the year.
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