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Twitter Posts Steady Increases in Users and Revenue for Q2, with Good Growth in Ad Spend

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Twitter has released its Q2 earnings results, which show steady increases in both users and revenue, as the platform works to maximize growth in line with its ambitious expansion targets for the next three years.

First off, on users – Twitter’s Monetizable Daily Active User (mDAU) count is now up to 206M, an increase of 11% YoY, and an additional 7 million on its Q1 figure.

Twitter Q2 2021

As you can see here, all of that growth has come from international markets, with Twitter’s mDAU count actually declining slightly in the US from last quarter (38m in Q1).

That could be a result of the much-discussed ‘Trump bump’, with many speculating that the former President’s affinity for the platform likely spurred increased usage. Which may or may not be correct, but with Trump now out of the headlines, it could be that fewer people are discussing the issues that spark more tweets, which could be a resultant impact.

Whether that becomes an ongoing concern is another question. Twitter has only added a million new US users over the past year, and with the company earning the majority of its revenue from the US market, that could become an issue if local growth continues to stagnate. Twitter has also seen a 69% boost in international revenue, which alleviates some of that concern, but still, it’ll be an element to monitor moving forward.

Another area of concern could be the platform’s growth in India, which has also been a key contributor to its overall usage stats. Indian Twitter usage surged some 74% during the pandemic, with the region’s 18.8 million users now making it the company’s third-biggest user market behind the US and Japan.

India is a key growth market for all social apps, but more recently, Twitter has clashed with Indian regulators over new rules that give more control to the Indian Government in regards to local content removals and user info requests. After initially rejecting the updated requirements, Twitter has now said that it will comply with the ruling, but tensions have been brewing between the two parties. If the Indian government were to take further action against Twitter, which it has threatened several times, that could deal a significant blow to its broader growth momentum.

But it hasn’t yet, and the numbers show that Twitter may well be on track to meet its growth projections, with its renewed focus on product development helping to spark new interest – even if, like Fleets, they don’t all go according to plan.

Last week, Twitter announced that it would be retiring Fleets next month, but the upside to that will be a bigger focus on its audio Spaces, which will now take over that top of feed real estate. Twitter’s also adding a new, dedicated tab for Spaces in the app, as it looks to capitalize on the audio social trend and boost user engagement.

Twitter Spaces tab

Some will view Fleets as a failure, but the fact that Twitter is trying, and iterating, so quickly seems like a positive, even if it does occupy development resources as a result. Twitter says that research and development expenses grew 39% in the period.

In terms of revenue, Twitter posted a strong result of $1.19 billion in Q2, a 74% increase YoY.

Twitter Q2 2021

As per Twitter:

“Total international revenue was $537 million, an increase of 69%, or 64% on a constant currency basis. Japan remains our second largest market, growing 40% and contributing $151 million, or 13% of total revenue in Q2. Revenue from Japan declined on a sequential basis in Q2, reflecting typical country-specific seasonality.”

The vast majority of Twitter’s revenue was driven by ads ($1.05 billion), which have seen a surge in interest as a result of the pandemic-lead eCommerce boost. That’s likely to remain strong in the second half of the year (post-Olympics) as the vaccine roll-out continues, and more regions look to fully re-open and get back to normal operation.

“[We saw] strong demand from advertisers looking to launch new products and services, and connect with what’s happening on Twitter across a number of key verticals, including technology, auto, media, entertainment, and fashion. Our strong momentum in MAP and performance ads also continued in Q2.”

Twitter also notes that SMB customers increased their overall ad spend in the quarter, while total ad engagements increased 32%, due to more users and more ad inventory.

Also this:

“Cost per engagement (CPE) increased 42%, primarily driven by like-for-like price increases across most ad formats due to the impact of COVID last year.”

So, due to the downturn in Q2 2020, Twitter’s saying that the increase here is disproportionate, but it may be worth monitoring your Twitter CPM numbers either way.

One other element that’s of particular interest is Twitter Blue, the platform’s new subscription offering, which is currently being tested in Australia and Canada. The option is Twitter’s first big move into direct user monetization, which could provide another revenue path – if users are willing pay for tweet add-on elements.

So are people paying so far?

Twitter included this generic note on Blue take-up within its shareholder letter:

“We’ve been encouraged by the initial response and look forward to further innovating and growing this new revenue stream with additional features, geographic expansion, and other offerings as part of our revenue durability strategy.”

Which doesn’t provide much insight (Twitter also noted similar about Fleets in its Q1 update), but it’s also likely too early to tell at this stage, with the offering only being made available last month.

Also, if you’re wondering why Twitter has been inserting more Topic prompts into your tweet feed of late:

“We also improved our ability to quickly connect people to the best conversations about their interests by better leveraging onboarding signals and introducing interactive feedback on Topic Tweets in the Home timeline. As a result, 41% of new customers in supported languages now follow Topics during sign-up, averaging ~14 Topics each.”

So Topics are working to improve Twitter content discovery, which could help maximize engagement. That said, Twitter did note recently that it’s reducing the frequency of Topic prompts in-stream after user complaints.

Overall, it’s a strong update from Twitter, though one which does benefit from a slowdown in Q2 2020, in terms of YoY comparison. I’m not sure how well it positions the company to reach its target of 123 million more users by 2023, but its revenue numbers look to be on track, and headed in the right direction.

Socialmediatoday.com

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Stand Out in a Crowded Market By Focusing on Organic Growth

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Stand Out in a Crowded Market By Focusing on Organic Growth

Opinions expressed by Entrepreneur contributors are their own.

My partner and I have seen the power of organic growth, even in a significantly competitive market like fashion. Our company, named BJ Positive Wear, was able to create something captivating to our customers within the last two years. I saw a complete transformation of our business in that time, all due to organic growth and the philosophies that we used to succeed.

Even though we had no idea what to expect, we decided from the very start to go in with organic growth being the ultimate goal. We did not benefit from outside help, so we chose to do this. We knew it would take longer, but in the end, every action brought us one step closer to where we are today.

I believe everybody could benefit from focusing on organic growth in a competitive market. If you’re unsure where to start, I will share with you what we did to achieve our success today.

Related: How Thinking Like a Designer Can Unlock Organic Growth

Why organic growth matters

You might not think much of it, but organic growth is the ultimate powerhouse for success. Organic growth is an important area of focus because it encompasses various areas of outreach and focuses on genuinely connecting with the audience you want to reach with your business.

Back in the days before the internet, organic growth was increasingly difficult. People had to do traditional marketing, create posters, billboards and more. Today, my partner goes on social media and shares content.

Social media has so much power, and many people I see and talk to in the business world don’t even grasp the full potential of it. For our firm, social media was what ultimately made us powerful and gave us the organic growth we wanted. You can have the same, and it comes with a few specific steps that we took as we embarked on our journey to success.

Create conversation

One of the essential tips is to create conversation. Organic growth is about engaging with the audience and making them feel a part of what you are doing. Your customer is the ultimate source of direction as a business. Even if you start with an idea for a specific product, you need to listen to the customer and see if what you have to offer is going to benefit them or not.

Create these conversations, and focus on what they say. Even if it is entirely different than what you might have expected, your customer is the ultimate tool for you to spearhead any decision to allow you to further expand and experience growth as a business.

Present value and transparency

Transparency is one of the most valuable tools in any business. If you want to succeed and capture any audience demographic’s attention, you need clarity in your messaging. You must lay out the value for your specific product or service to the audience. Customers like honesty. This is something that I have come to appreciate as a co-founder.

People want to hear exactly what you have to offer. So, don’t leave a mystery. Instead, present your value and be transparent in your messaging. This is what ultimately creates organic growth, but it also leads to another essential aspect of how we were able to achieve our success.

Related: How Transparency In Business Leads to Customer Growth and Loyalty

Differentiate and remain competitive

One of the ultimate tools people often do not tap into is the potential for every social media user today to understand their competition. Everything is publicly available, and there are no surprises. If you find yourself in a position where you are genuinely struggling to remain competitive, point out where you think you can defeat your competition.

When we were focusing on creating our clothing business, we wanted to create something meaningful. Additionally, we wanted to create something that would ultimately stand out compared with every other company we’d seen in the industry. This eventually led me to differentiate and focus on innovating what was already in our market. If you want to succeed, take it from us: You need to determine and figure out what your competitor offers that you can beat and defeat.

Organic growth accelerates when you become a creator

Organic growth is ultimately the most meaningful because it allows you to create conversation and value while remaining competitive with your competition. But there’s something else that many people often forget.

There are multiple kinds of organic growth facilitators in this world. Some people stick to diversification, while others focus on offering something of value that is a necessary product to people. Finally, some people, like our business and myself, become creators.

Why creators stand out and defeat the competition

You can choose any path you’d like to accelerate organic growth, but ultimately, I see the most value in becoming a creator. As a creator, our business built something that truly did stand out compared to other competitors. We focused on innovation first, then differentiated and ensured that there would be immense value offered in whatever we did in the industry. As a startup, I can offer you so much advice, but this is ultimately one of the most important: If you want to see success, inspire people, and become a creator of your own.

You have the power to create value

Creators are essential and stand out because we build value with our products. We value each service we offer, and new business models will be created. We create a massive following and see our company take off in ways we never thought possible. Organic growth accelerates when you are a creator, and this is because you find a way to inspire people.

Be an underdog and stand out

People like a success story. Everybody wants to root for the underdog, and quite honestly, my business was the underdog, but we were also extreme innovators in what we were able to do. If you want to see success in the industry you are part of, then I urge you to consider what you can create to stand out.

Related: 4 Surprisingly Simple Ways To Stand Out From Your Competition

Revisit your ideas and improve them

If you have already begun a product, differentiate yourself and re-envision what you’ve already done. I guarantee you that when you think of something impactful and creative, others will see it and flock to you and your business. They will believe in your mission and see you as inspirational.

Focus your success on your organic growth

No matter your path, you need to consider certain factors if you are a startup. Remaining competitive and finding a way to differentiate yourself honestly is the ultimate goal of organic growth.

For us, especially with how significantly our business grew in such a short time, we don’t owe anybody anything, and it’s a risk we took. We chose to put everything into creating something nobody had ever done, and even in the end, it was far more tiring and more prolonged than we ever envisioned. Still, I promise you that the journey will be worth it in the end.

Hopefully, I provided you with the insight and inspiration needed to take that leap and take a risk. No matter what business you run, I hope you present something nobody has ever seen before, but also attempt to inspire people to follow you, no matter where your journey takes you.



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Elon Musk Says That Twitter Will Continue to Offer Free API Access to Good Bot Accounts

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Twitter’s Cancelling Free Access to its API, Which Will Shut Down Hundreds of Apps

It’s honestly difficult to make any assessment of Elon Musk’s time in charge of Twitter as yet, because while he has made some bad decisions, he’s also reversed course on most of them, and while he continues to try things that seemingly have no chance of working out, he’s also not taking past precedent as definitive.

Which is maybe a good thing?

In the latest example of Musk’s shoot first, ask questions later management style, Elon has seemingly reversed the unpopular decision to charge for all usage of Twitter’s API, at least in some applications

As per Elon’s tweet, Twitter will continue to allow ‘bots providing good content’ to access Twitter’s API for free, which looked set to be one of the key losses of Twitter’s recent decision to paywall all API access.

Though much of the angst in this case came down to poor communication – last week, Twitter announced that, starting February 9th, it would be cutting off free access to its API, which is the key connector that many third party apps and Twitter’s bots use to function.

That triggered a strong response from the developer community, though a day later, Elon further explained that:

This wasn’t an official announcement, nor was it communicated via the Twitter Developers account. This was Elon, in an exchange with another user, randomly providing valuable context that would have avoided much of the angst and concern that came with the original Twitter Dev statement.

Now, the bigger question is whether $100 is any disincentive to spammers, who likely make way more than that from bot activity. But regardless, $100 is likely affordable for most of the third-party apps which looked set to lose the most from this update in policy, so it’s actually nowhere near as bad as the first announcement seemed.

It’s just bad communication, and given that Twitter no longer has a comms department, that makes sense.

But it’s also the perfect microcosm of the Elon experience, which he both benefits and suffers from, though maybe not in equal measure.

The key thing to note is that Elon loves attention. His one undisputable skill is that he knows how to make headlines, how to get people looking his way, which is why his main money maker, Tesla, has never needed a comms department either. They just let Elon say whatever he likes, good or bad, and the press comes running – and in this respect, you can see how his approach to such announcements at Twitter actually helps them get wider coverage and awareness, as opposed to them being outlined through regular channels.

But is that a good thing? Getting the developer community offside seems like unnecessary collateral damage, while the negativity this creates also seems less conducive to functional working arrangements with external partners and suppliers.

It seems like that could be harmful for his companies, long term – but then again, the more transparent nature of such, and his willingness to change course in a responsive way, could also be beneficial. Maybe?

Essentially, what we’re getting with Twitter 2.0 is a window into Elon Musk’s ‘hardcore’ management style, which is not entirely reliant on internal debate and decision-making, and also takes into account audience response, and factors that into its process.

Which is actually, probably, better, at least in some ways. I mean, Twitter, in times past, took months, even years to gain any traction on updates, before rolling them out, then it was forced to stick with them, even if they were unpopular, due to the amount of time invested.

With 70% fewer staff, Musk doesn’t have that luxury, but he has repeatedly shown a willingness to listen to the case for and against each update, and shift tack accordingly.

So while he has made some bad decisions, and will continue to do so, Twitter is moving fast. It’s breaking things too, but it’s still running, and Musk seems confident that he can convert it into a revenue positive business sometime soon.

And now, your weather bots, your system updates, your automated accounts that let you know what you want via tweet, will continue to operate. Unless Elon changes his mind again.



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The Drum | What Does The Growth Of Little Red Book Mean For Post-pandemic China?

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The Drum | What Does The Growth Of Little Red Book Mean For Post-pandemic China?

The shopping app proves that consumer confidence and community are key to a thriving business post-Covid, writes Michaela Zhu of Emerging Communications.

Little Red Book, aka Xiaohongshu, or more simply ‘Red’, is a leading Chinese social shopping app. With over 300 million users (and counting), western brands are taking notice – and with good reason.

Little Red Book first appeared in 2013. From modest beginnings focussing on female beauty products, the app expanded to help all kinds of global brands connect with Chinese consumers. Whether it’s holiday inspiration, university choices or luxury fashion, Little Red Book is now the go-to app for lifestyle content and shopping.

With a unique mix of social sharing, long-form articles, live-streaming and e-commerce, it’s a vital part of the Chinese social media landscape. What’s more: Little Red Book is the place for interacting with Chinese gen Z and millennial audiences. In July 2022, nearly 30% of Little Red Book’s active users were under 24 years. Another 40% of users fall into the 25-35 age bracket.

Discover how Little Red Book has transformed over the last few years, key trends, and how to integrate them into your China digital strategy.

How Little Red Book is changing post-Covid China

By 2019, Little Red Book attracted over 200 million users. Fast forward nearly four years, and the platform has maintained its grip on affluent Chinese consumers. It’s one of the few social media platforms where growth still exceeds 30% year-on-year. Little Red Book is here to stay, and in a big way.

This user growth has brought significant changes in content, especially as Chinese consumers adapt to post-pandemic life. Gone are the days when Little Red Book catered exclusively to beauty and fashion niches. Instead, people use the platform to make significant life decisions as well as day-to-day purchases. With content on entering high school, getting married and buying property (to name just a few), you’ll find almost every aspect of daily life up for discussion.

While the relaxing of Covid restrictions has brought drastic changes alongside feelings of liberation, there’s understandable uncertainty among Chinese Gen Z. Long-term lockdown life caused younger generations to pay close attention to their immediate environment. There’s a focus on simplifying their lives and recycling items, as well as yearning for distant places and global cuisines.

A related trend for Little Red Book is the growing Chinese travel industry. Unsurprisingly, the recent easing of travel restrictions resulted in a travel bonanza. For example, two billion trips are expected during this Lunar New Year period. These figures are nearly double the previous year’s and represent a 70% recovery on 2019 levels.

China branding: two essential trends

For content marketing in China, there are two major Little Red Book trends that any marketer needs to know. These are the recent surge in travel-related content and the shift toward new minimalism and ‘rational consumption’.

1. Exploring opportunities for the travel sector

With China’s international borders reopening, travel is no longer a far-away dream. Many Chinese visited their nation’s most popular cities during the pandemic years. Others opted for secluded opulence, spawning the growth of glamping as a trend. Indeed, this luxury camping culture saw ‘glamping’ searches on Little Red book increase by 746% during 2022.

In 2023, foreign countries are also a possibility. As a result, nearby destinations such as Tibet and Southeast Asia predict a strong rebound in the coming months.

Global brands such as Marriott Bonvoy are already capitalizing on these trends, hitting the mark with their China marketing campaigns. For instance, the 2021 Power of Travel campaign used 10 Chinese key opinion leaders to show how travel inspired their lives.

With influencers including Chinese gen Z creatives, families and business executives – the brand showed their relevance to the China market as well as inspiration for rediscovering ourselves through post-Covid travel.

2. Embracing minimalist and rational consumption

In the aftermath of an unprecedented pandemic and global economic downturns, people all over the world are simplifying and streamlining their daily lives.

China is no different, and its younger population has particularly embraced a minimalist mindset. This doesn’t mean stopping purchases completely, but instead shows a shift towards ‘rational consumption’.

Young people are especially shunning impulse purchase decisions, resulting in a decline in ‘hard selling’ and live broadcast sales events. This trend has worked in Little Red Book’s favor due to the platform’s focus on in-depth consumer reviews and trusted user-generated content. Put simply, it’s all about building confidence and community before purchases take place.

For more in-depth insights into Chinese social media trends, download our guide to getting started with Little Red Book.

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