Why Twitter Is Succeeding
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.”
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.
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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.