Anthony Nguyen

"Twitter Issues Profit Warning as Coronavirus Spread Weighs on Ad Spending" Analysis

Photo credit goes to: Google search on "twitter stocks"

Information credit goes to: https://www.wsj.com/articles/twitter-issues-profit-warning-as-coronavirus-spread-weighs-on-ad-spending-11585003279?mod=searchresults&page=1&pos=6

Article Publish on March 23, 2020

     As many companies are trying to manage their businesses and in different ways, advertising has become a huge contention for businesses. Its interesting because making a product seems to actually be the easy part for most businesses, while the hard part is how they can deliver the product and advertise it. Due to the situation we are dealing with, many companies see social media and televisions as their best bet when it comes to advertisements because most people will be staying at home on their phone or watching TV, which ties to the idea of promotions in Chapter 15.

     However, promotion through social media has now apparently become a problem. According to the article, this is causing an expense for Twitter and that over time they seem to be losing money as ad dollars are disappearing, more likely because some people are not profiting off the social media advertising, or because companies are trying to save money and cut off many of its money spending habits. In fact, because of this Twitter is now facing a decline as well. It seems that when one company is hit hard, another is bound to be hit also if the relationship between them benefit each other. In other words, if one profits, so should the other. This, as I stated before, ironically ties to Chapter 15 as promoting your product through advertisement is great, but it definitely does not work for everyone. Sometimes social media isn't the best platform to use. Maybe television is more effective for your product, or maybe word of mouth is. What I personally find interesting is that I myself do not have social media or watch television often, so the only way I can see a product that be considered interesting and innovative is by either searching it up, having articles published about said products, or through YouTube.