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Metrics that Matter for Advertising-based Startups

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With Twitter‘s impending announced recently, more information has been made available as part of the listing documents up on the US SEC website.  CoFounder Jack Dorsey  is also the founder of the mobile payments company, Square which is disrupting  banks and credit card providers.

SquareMetricsDashboard

 

At both Twitter and Square, Jack Dorsey is reportedly obsessed with metrics (see their full-wall dashboard in the image alongside).

 

So

what metrics do they use at Twitter that other businesses targeting advertising revenues can learn from?

Monthly Average Users (MAUs)

MAUs are a measure of the size of the active user base.  Twitter define this as Users who logged in and accessed Twitter through website, mobile website, desktop or mobile applications, SMS or registered third-party applications or websites in the month.

As at 30 June 2013, Twitter reported 218 million MAUs.

User Engagement

Timeline views and timeline views per MAU are measures of user engagement.  Defined as the number of timelines requested when registered users visit Twitter, refresh a timeline or view search results while logged in on our website, mobile website or desktop or mobile applications.

In the three months ended 30 June 2013, Twitter had 110.3 billion timeline views, representing 691 timeline views per MAU.

Advertising Revenue Per Timeline View

As Twitter says “advertising revenue per timeline view is a measure of our ability to monetise our platform”.  This is where the rubber hits the road as Twitter intersperses its advertising into the timelines shown to users.  In the three months ended 30 June 30 2013, Twitter’s advertising revenue per timeline view was $0.80.

What do you know about your business?

Do you know how many users you have, and how this is trending, how engaged your users are in the experience you are offering them and are you tracking how

you will monetise this by interspersing advertising into their experiences … all without affecting their experience of course.

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