- The social network, Twitter, saw its user base grow by 14% to get to 139 million users during the second quarter of this year. It merged API solutions department and agency development in a move meant to help advertisers to hone their campaigns. The former head of global agency development, Stephanie Prager, will be in charge of overseeing the combined group.
- Before the move, the agency development team focused on making relationships with ad agencies. The platform solutions department worked with ad tech businesses like Amobee, 4C Insights and SocialCode marketing. Those companies work on self-serve ad campaigns among platforms like Twitter, Pinterest, Snapchat and Facebook.
- Twitter says that the move will only affect the API and not the groups that work with the software developers to create Twitter apps or research trends on the app. The API allows marketers to analyze, publish and optimize their ads based on data collected on Twitter.
Twitter expects that restructuring will not cause job losses. It says that the move reflects industry advertising changes and that the platform is looking to up its advertising value bay making it easy for marketers to deploy campaigns around conversations already happening.
Traditional agencies are expanding their tech capabilities and looking to optimize ads. In some cases, they offer solutions that resemble those of ad-tech companies. Such trends reshape the way media and ad agencies operate as they face competition from non-traditional firms competing for marketing dollars.
The creative and ad-tech sides of advertising are coming closer together fueled by the drive for data and digital-driven marketing. Acquisitions and mergers value in the martech sector increased by 200% to get to $7.2 billion in the first six months of 2019. There is an accompanying scramble for consumer data to support ad campaigns. 40% of the top acquisitions in the Q2 were martech companies. Publicis Groupe made a notable purchase of $4.4 billion to get Epsilon. Another firm, Accenture, made the biggest acquisition in its history, getting Droga5 at $475 million.
Twitter’s moves come alongside a winning streak of seven profitable quarters straight. The revenue of the company went up 18% to get to $841 million by Q2, beating estimates by Wall Street. The company expects that its operating costs will go up 20% this year following its addition of workers to better the policing of abusive behaviour on the platform and improve its overall running. There is a more considerable effort to get rid of toxic tweets, which has led to a reported 18% drop in spam behaviour.