Why Twitter Is Succeeding

Why Twitter Is Succeeding

Social media Twitter

Twitter never got the memo that predicted its failure.  As far back as 2016, pundits have been forecasting the demise of the microblogging service, citing, among other things, a lack of direction and a stagnant user base. Even when Twitter’s stock value rose in 2020, detractors dismissed the news and said the company was simply benefiting from the sudden rise of the digital economy. But this phoenix continues to rise from the ashes, and it’s time to give Twitter its due. The company has made an impressive turnaround, as evidenced by its latest earnings announcement. In fact, the company’s performance beat Wall Street expectations in many important categories.

In discussing its growth, Twitter has credited a jump in advertiser demand. Moreover, it appears as though Apple’s much-discussed privacy controls launched in 2021 are not hurting Twitter to the degree expected. Let’s take a closer look at why Twitter is succeeding.

Strong Advertising Growth

What exactly gave rise to the bump in advertising demand? The growth happened at least in part because Twitter is rolling out more features for advertisers. One example: a video tool. Per their shareholder letter, Twitter has launched a prediction model that projects the likelihood a viewer will watch a video to completion, a feature meant to meet the needs of advertisers who prioritize video completion rates. A “15-second (15s) view” bidding unit powered by the prediction model gives precedence to engaged views; according to Twitter, “Early testing has shown that [the bidding unit] drives Twitter’s highest video completion rates yet.” The data does look good: advertisers using the 15s view bid unit are seeing an 89 percent higher completion rate, at an average 25 percent lower cost per completed view.

Strong User Growth

Of course, advertisers don’t want to be on a platform unless they know a lot of people are going to congregate there; they want those eyeballs. Twitter, like any company, has to roll out new features to entice people to visit—and linger. Twitter understands this, and their actions reflect that understanding. Per CNBC, “In the [second] quarter Twitter introduced its first subscription service, which gives users access to an Undo Tweet button and other features.” Named Twitter Blue, the subscription service is meant for “power users” who are happy to pay a monthly fee in exchange for exclusive features.

Taking a cue from the success of Clubhouse, Twitter also released its Spaces live-audio chat feature on mobile devices for all users with at least 600 followers. On Spaces, users can join virtual rooms and engage in real-time audio conversations with others. In addition, a new Tip Jar feature will enable users to send money to creators on Twitter.

Notably, the new features have the potential to appeal to brands as well as individuals: consider the fact that Twitter recently signed a deal with the NFL to use Spaces commercially. The league has committed to producing content: more than 20 Spaces, or rooms, that will air around events like the draft and Super Bowl. Per Marketing Dive, the NFL “is the first sports league to offer sponsored Twitter Spaces to brands.”

News Source

It’s also worth noting the connection between Twitter and the news. In fact, brands interested in the news-oriented world are wise to consider Twitter as part of their paid social strategy. As reported by Black Bear Design, Twitter is one of the most popular platforms on the planet: 24 percent of online adults use this microblogging service. And a whopping 86 percent of Twitter users indicate that they visit the network to get their news fix, with almost three quarters of those individuals doing so every day.

Contact True Interactive

In short, Twitter keeps on finding ways to stay relevant. Is the platform a good partner for your brand’s reach? Contact us. We can advise. Learn more about our expertise with social media platforms here.

Why Twitter Spaces Matters to Brands

Why Twitter Spaces Matters to Brands

Social media

Social audio is here. In an era of social isolation brought on by the constraints of Covid-19 living, the sound of the human voice has become a profound balm. And the resultant success of live audio apps like Clubhouse has inspired other platforms to create their own alternatives to voice-based connection. Twitter’s take on the audio phenomenon? Spaces.

What Is Twitter Spaces?

Described by Twitter as “a small experiment focused on the intimacy of the human voice,” Spaces is similar to Clubhouse in that it allows users to create their own audio chat rooms and be part of rooms created by others. Conversation topics run the gamut, covering everything from popular culture to tech.

How does Spaces distinguish itself? It could be argued that some differences are purely semantics: users join “Spaces” rather than “Rooms,” for example. But Spaces has also emphasized the fact that anyone and everyone can join the app, a contrast to Clubhouse’s invite-only model. In a given Space, hosts make the choice of who to invite to a conversation. Each Space allows up to 11 people (including the host) to participate in the chat; the number of listeners allowed is unlimited.

At the moment, Spaces remains in beta mode, but Spaces is expected to open up for general use soon.

Why Twitter Spaces Matters

Twitter Spaces matters because it’s part of a larger trend: the rise of social audio. When a big player like Twitter leaps into the field with its own contribution, that’s a sign a movement has legs—that social audio is being viewed as more than a passing fad. In fact, social audio has been steadily gaining traction for a while now: according to a Nielsen report, audience use of streaming audio jumped from 50 percent to 64 percent between the first quarter of 2019 and the first quarter of 2020. Then Covid-19 happened, and social distancing. Voice-based connection became even more welcome.

Twitter Spaces is important for another reason: it could threaten Clubhouse as the reigning king of social audio. Consider Twitter’s slate of new resources, like direct payment service SuperFollows, that might be particularly attractive to business owners. SuperFollows makes it possible for Twitter users to charge to view special tweet content, and also serves as a way for users to sell books, how-to videos, and other media. As noted in CMSWire, “These features can be combined to entice people with a consolidated platform that favors Spaces over Clubhouse for their own business.”

How Might Brands Get Involved?

Because social audio platforms are a relatively new phenomenon, the opportunities for brand involvement are still evolving. But it’s already clear that apps like Twitter Spaces create a favorable place to:

  • Gain audience feedback on your brand. The digital format reaches a wider audience, even as the audio component facilitates a genuine back-and-forth exchange.
  • Host discussions on topics relevant to your industry. Using apps like Twitter Spaces, you might invite a group of people to conversations that position you as a thought leader. (It’s also worth noting that creating a Space is easier and more cost-effective than organizing an in-person gathering.)
  • Network with other experts in your industry. By participating in conversations germane to your industry, you’ll be rubbing shoulders with other experts, in so doing enjoying an opportunity to share information and generate leads.

What Brands Should Do

Like any new app, Twitter Spaces reminds brands of what they can do to maximize digital potential. We recommend that you:

  • Treat Twitter Spaces as a focus group to learn from.
  • Get your own people involved in the platform—creating their own conversations and also understanding what topics are trending in other Spaces. (While Spaces is in beta mode, people cannot create conversations unless they have access to Spaces, but they can listen to them. However, Spaces will open up for general use soon.)
  • Take this opportunity to get your Twitter house in order. Make sure you are engaging on Twitter and building your brand there. Your involvement in Spaces will likely draw attention to your own Twitter account. Make sure your Twitter is ready for increased attention.

In short, be ready for when brands can really play on Twitter Spaces!

Contact True Interactive

Interested in social audio but not sure where to start? Contact us. We can help.