Some say that Facebook and Twitter have very much in common, but still they have a lot of differences as well. The main idea of the 1st social network is to connect people, while the other one provides all opportunities for the global conversation. But practically we can see huge difference between these two social networks.
Twitter is much smaller social network in comparison with its colleague: Twitter has nearly 200 million users per month, while this figure is 1.15 billion for Facebook. Last year when Facebook provided its statistics those figures were like 845 million.
Nowadays Facebook can easily bring profit, while Twitter is still cannot. Its net losses are still huge – almost 80 million USD in 2013. In the 1st half of 2014 its net losses decreased to almost 70 million USD.
What are the reasons of such situation? Twitter is very slow with the updates. It has created promoted tweets in 2010 and since then nothing until summer 2014. By contrast Facebook is open for cooperation with the advertising networks since 2006 and is updating all the time.
In 2011 Facebook spent almost 8 percent of its income for general expenses. In 2012 these figures for Twitter were about 18 percent of its income. For reference, Facebook spent more than 11 percent from its income on sales, while Twitter spent more than 27 percent.
Twitter’s income is increasing faster than Facebook’s. In 2012 Twitter got more than 300 million USD as income, in the 1st half of 2013 its income was doubled and reached 250 million USD.
Twitter is more powerful in mobile advertising. 3 quarters of its visitors use it through devices, opening wide opportunities for mobile marketing campaigns.
Facebook brings no mobile income and this is one of the main risk factors of this social network. Till now it has reached only 40 percent of its mobile income. That is why mobile income stays the main area of growth for both these social networks.
2 main social networks of the world use different ownership structures. There is no shareholder with controlling part for Twitter. The largest part of shares belongs to former CEO and co-founder Evan Williams – 12 percent of shares.
Facebook is absolutely different in this part of the story. It qualifies as a company with the high control. Its CEO, Mark Zuckerberg, owns 57 percent of shares of the social network.