The golden age of Twitter seems to be coming to an end, as Twitter struggles to engage users the way that it used to. As of now, that doesn't stop advertisers from pouring revenue into the social media giant, but the fear is that the lack of user engagement will catch on, and advertisers will soon realize returns elsewhere.
However, Twitter is focused on new methods of advertising. Twitter is working on an exciting video ad product, along with a new ad pricing model. It should be able to attract more ecommerce users and advertisers by allowing users to achieve "one-click" purchasing, directly from the Twitter website.
The cost per ad engagement is still decreasing, while ad revenues increased 109% during the last quarter. The CFO, Anthony Noto, has noted the changes, but does not acknowledge the details around the new ad business' contributions to advertising conversions.
Source: http://adage.com/article/digital/twitter-beats-revenue-expectations-user-engagement-falls/295598/
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