Twitter’s ad revenues
Twitter (TWTR) gets a significant portion of its revenues from advertising. In the second quarter, its advertising business posted revenues of $601 billion, a significant 23% YoY (year-over-year) growth. Its advertising revenues contributed ~84.5% of the company’s total revenues in the quarter.
Like Twitter, rivals Facebook (FB), Snap (SNAP), Yelp (YELP), and Alphabet’s (GOOGL) Google depend on advertising for most of their revenues. In the second quarter, Facebook’s ad sales growth of 42% YoY was faster than Google’s at 23.9% YoY and Twitter’s at 23% YoY.
Social media companies under scrutiny
Social media companies have come under scrutiny since January when US intelligence agencies revealed that social media platforms were used by Russian groups to influence the 2016 US presidential election.
Since Facebook’s Cambridge Analytica data leak scandal in March, Twitter, Facebook, and Google have been grilled by lawmakers. Reportedly, personal data for 87 million Facebook users were used without their permission. In May, the European Union enacted a new privacy law called the General Data Protection Regulation to crack down on data practices.