In addition to slowing subscriber growth, Twitter Inc. (TWTR) has another problem: Instagram is stealing advertising dollars from the social media company, according to a new report from STRATA, a unit of Comcast Corp.
STRATA polled advertising agency executives and found 63% of survey respondents plan to advertise on Instagram compared to 56% who are eyeing Twitter. It’s the first time Instagram, which is a photo sharing social network, has been exceeded Twitter in the race for advertising dollars. The report also found that Instagram’s agency attention has increased 86% from last year while Twitter's has declined 4%. (See also: How Instagram Makes Money.)
Facebook maintained the top spot with 96% of advertising agency executives saying they will spend their money there. YouTube came in second with 68%. The first quarter survey also found advertisers are increasing their dollars earmarked toward social media with 17% of agencies saying up to a quarter of their budget will go to social media, a 76% increase from last year’s first quarter survey.
“Digital publishers keep on getting better at providing more advertising opportunities to ad buyers. Within digital, the fastest growth we’re seeing is in social media,” said J.D. Miller, director at STRATA in a press release announcing the survey results. “However, along with social’s rise, video – both local and streaming – continues to dominate. Overall, agencies are getting a better handle on their media mix and are creating exciting campaigns with these various tools.”
The survey results come at a time when concerns about Twitter’s market share have been rising. Earlier this month eMarketer, the research firm said Snapchat was on the road to surpassing Twitter in active users in the U.S., and late last month reports surfaced that two senior executives in charge of global business development and the company’s media team are stepping down. (See also: Is Twitter Doomed?)
Meanwhile on Thursday, media reports surfaced that 33 million Twitter passwords had been hacked and are available on the so-called dark web. Twitter said in a blog post Friday it is confident the Twitter information wasn’t obtained from a hack of the company’s servers. Account holders who were part of the breach woke up to locked accounts and directions to reset the password. Shares of Twitter are down Friday more than 3%.