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More on Twitter's S-1

  • One possible cause for concern for investors: Twitter's (TWTR) "average cost per ad engagement" (i.e. ad prices) has been steadily falling, and dropped 46% Q/Q in Q2. The company attributes this to growing inventory, particularly overseas. However, ad revenue per 1K timeline views rose 26% Y/Y in Q2 to $0.80.
  • Benedict Evans estimates Twitter is averaging $3/MAU/year in revenue, and seeing 8 timeline views/day per MAU.
  • International monetization has a ways to go. Q2 ad revenue per 1K timeline views was $2.17 in the U.S., but just $0.30 elsewhere. Facebook can sympathize.
  • Co-founder Evan Williams owns the largest individual stake (12%). Five VC/investment firms own 5%+ stakes. Unlike Facebook, Google, and LinkedIn, there's no dual-class share structure.
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Comments (5)
  • David Jackson
    , contributor
    Comments (1235) | Send Message
     
    Is "MAU" here monthly active users? In which case, isn't $/MAU/year a weird metric? Wouldn't $/MAU/month be more logical?
    5 Oct 2013, 04:04 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (857) | Send Message
     
    It's a little imprecise, but it gives a general idea as to how much ad revenue Twitter gets each year from its users, on average. Evans' estimate suggests they get the equivalent of a handful of AdWords clicks.
    5 Oct 2013, 05:35 PM Reply Like
  • David Jackson
    , contributor
    Comments (1235) | Send Message
     
    Fascinating. Do you know what the equivalent number is for Google search users, ie. the average revenue per user per year?
    5 Oct 2013, 06:19 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (857) | Send Message
     
    Wish I had a solid number, but Google is too secretive for that. Google disclosed search topped 1B users/week in 2010, but they haven't provided an update since then. Total revenue for Google sites (search and otherwise) was $31B last year, and should be above $36B this year.

     

    If one assumes ~$30B of this year's Google sites revenue comes from search (YouTube/Maps/Gmail making up most of the rest), and that search MAUs are now around 1.4-1.6B, then their annual revenue/user might be in the range of $20. But that's a very rough estimate.

     

    Interesting stat: Google now has 3 different product with 1B+ MAUs, and might soon two more in Android and Chrome:

     

    http://bit.ly/GEKDrk
    5 Oct 2013, 07:25 PM Reply Like
  • David Jackson
    , contributor
    Comments (1235) | Send Message
     
    Eric, superb answer - thank you.
    13 Oct 2013, 09:46 AM Reply Like
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