Twitter’s newly published annual report for 2013 shows that its ad rates fell by 18% in the final three months of the year. While the rates were down, the total ad revenue for the period actually rose – due to the fact that it attracted more advertisers (albeit ones paying less for their ads). Quartz reports that its ad rates have been sliding steadily since the start of 2012, suggesting they dropped by 81% between that period and the end of 2013. Twitter has responded by saying the rates are down because the ad inventory is up and this means that smaller companies are increasingly using its ad platform. Quartz adds that – because Twitter sells most of its inventory via online auctions – it “hasn’t been able to find a stable price that’s attractive to clients, and it could keep falling”.

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