Twitter’s Users Are Becoming More Addicted
Social media platform, Twitter, is struggling to find its way. As a business, Twitter has seen senior management coming and going as the company has struggled to reinvent itself. The rise of other social media platforms, mostly Snapchat but also Facebook, has seen the company struggle to provide advertisers with good enough reasons to promote their products on the platform. The company has switched away from measuring Twitter users from the traditional monthly active user statistic and is now using the growth in the daily active user statistic – but it is not quoting the numbers of daily active users!
Twitter disclosed something major in the second quarter 2017 results: it didn’t add any new users during the quarter. This news caused the stock value of Twitter to fall as investors feared no more user growth means very limited potential to grow future profits. However, Twitter attempted to rebuke these fears by explaining that the daily active user count is showing a 12% gain year on year.
In other words, whilst Twitter hasn’t gained any new users, existing users on the platform are using it more and more. This either means they’re addicted or happy with Twitter, but either way, it’s encouraging in the short term for the business. Happy or addicted users are loyal and are more likely to continue using the service. This is something that Twitter has been explaining to investors for a while now: the number of people who use and enjoy Twitter is growing, even if the number of overall users isn’t showing any growth.
It’s not mission to Mars to figure out that if there are no new users joining Twitter, but existing users are more engaged, eventually the number of daily active users will match the monthly active user statistic. Twitter does not disclose the number of daily active users, only the growth relative to previous quarters. The Recode website ran some calculations to estimate how many daily active users Twitter really has and their answer is approximately 157 million users. This is some way short of Snapchat’s 166 million daily users – and dwarfed by Facebook’s 1.325 billion daily active user statistic.
After this estimate was published, Twitter explained that previous data should not be used to estimate current user totals. Wouldn’t it be easier if Twitter disclosed their daily active user count? Or is the company running out of ideas?