Is there life in the dinosaur of social networks yet, or is it slowly dying? The media giant has remained pretty constant ever since it was founded with the exception of some small things, like increasing the character count from 140 to 280. It still forces its users to be clear and concise, cutting out fluff and waffle. This is an advantage to many users.
However, Twitter is facing some stiff competition from blog-based sites like Tumblr and Reddit, which offer their users more room to air their views. How will this develop? Read on to see what we found.
No News = Good News?
Facebook has undergone a number of changes over time, such as adding pay per click advertising, a buy/sell marketplace, and suggesting content to users. Twitter, on the other hand, remains relatively stable and unchanged. But is no news good news? It depends on who you ask. Younger people are beginning to expect more variety as more and more social media enter the market. Twitter’s lack of innovation could become a downside.
Twitter generated $717 million in revenue in the fourth quarter of 2016, which fell very short of expectations. The unimpressive performance has continued. In 2016, Twitter had 319 million MAUs (monthly active users), up only 4% y/y. what’s worse, the company’s advertising sales dropped by 5% in the US and 1% worldwide y/y, and this is its biggest source of revenue.
Although Twitter’s daily active users (DAUs) are said to have increased by 11% in the above period, no exact figures are available because the company doesn’t wish to disclose them.
It’s too early to say whether the above facts signify Twitter’s inevitable death. The media is losing market shares to Facebook, Instagram, and Snapchat. Still, it has many active supporters who wouldn’t trade it for anything.