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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.

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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.

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“[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.

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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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Meta Plans to Establish an NFT Marketplace, Expanding Beyond Profile Pictures

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Meta Publishes New Guide to the Various Security and Control Options in its Apps


If it’s happening on social media, Meta wants to own it, so it comes as no surprise that the company is currently working on ways to tap into the popularity of NFTs. But Meta actually envisions a bigger future for digital goods, beyond cartoonish profile pictures, which will eventually expand the core functionality of the NFT transaction process to facilitate the transfer of various kinds of digital goods within its planned metaverse.

Sorry, I should say the metaverse, as Meta is keen to underline that it won’t own it, as such (antitrust lawyers take note).

As reported by The Financial Times:

“Teams at Facebook and Instagram are readying a feature that will allow users to display their NFTs on their social media profiles, as well as working on a prototype to help users create – or mint – the collectible tokens, according to several people familiar with the matter. Two of the people said that Meta has also discussed launching a marketplace for users to buy and sell NFTs.”

The first element noted here is already in progress – last June, we reported on Instagram’s initial test of a new ‘Collectibles’ option which would facilitate the display of NFTs in the app (as discovered by app researcher Alessandro Paluzzi).

That test also pointed to facilitating the sale of NFTs in the app, with a process for bidding and buying NFT images.

The latest element in this process includes attaching a digital wallet to your account, much like you would on OpenSea or other NFT transaction platforms, so the experiment seems fairly well advanced in this respect.

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That likely points to Instagram making a move on this soon, and where Instagram goes, Facebook tends to follow, so that part is no real revelation versus what we already know.

But what is interesting is how this process could be built into Meta’s broader metaverse plans, and the sale of digital goods, beyond just profile pictures (PFPs). Because really, that’s just the starting point, and there’ll likely be far more value in buying other digital products and services in the next stage of connection.

Which is where much of the confusion about the current state of NFTs lies. Yes, there is major potential in the purchase and ownership of digital goods, as we’ve seen in various game worlds, where users can buy add-on features like skins, weapons, abilities, etc. For many young consumers, this is already second nature – but while much of the value in these items is aesthetic, providing an opportunity to ‘flex’ your latest purchase in each app, there is also a practical value and usage, which is different to PFP projects, the main focal point for current Web3 early adopters and those keen to be at the forefront of the next digital shift.

Overall, PFPs don’t provide much value, and likely won’t remain a key focus for digital ownership. Many of these projects hilariously claim to be ‘metaverse ready’, which is not possible, because not even the metaverse is metaverse ready at this stage, with the schemas and parameters yet to be established that would enable cross-platform transfers and usage of digital goods in the broader space.

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Some PFP projects are working to build out broader community benefits and usage options for owners, which will extend the value beyond their images alone. But really, the true value of NFTs will come in other digital goods and items, which looks to be the true focus of Meta’s NFT push.

Indeed, back in October, Meta’s CEO Mark Zuckerberg noted that NFTs could eventually be used to support a new market for digital goods in the metaverse, not just profile images, while Meta’s Head of Metaverse Products Vishal Shah has also noted that the underlying NFT transaction process will eventually make it easier to sell digital products in its apps.

In this sense, PFPs are only the beginning of what could be possible with digital items more broadly, and with Meta also continuing to work on its own cryptocurrency , it does seem likely that, eventually, it will be able to facilitate broader digital transactions through the NFT process.

But those NFTs won’t be limited to PFP images, which is the main criticism of the current NFT market. Why would you pay to own an image that you can view for free? Why would you pay to only own the receipt of a digital image, and not the full copyright and commercial re-use rights (for most projects)?

Legally, there are still some issues to be worked out in this respect, but if you view NFTs as a gateway, of sorts, to broader transactions of all kinds of digital goods, from avatar clothing to skins, to in-game weapons, items, spells, etc. When you consider that NFTs don’t have to just be images of smiling monkeys and cats, you can start to see the broader potential of NFTs as real value items, especially as we increasingly spend more and more time in these digital environments.

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Essentially, early NFT adopters are indeed early, and many are putting far too much stock in PFPs, and getting ripped off as a result. But the broader view is that these digital items will have more use and expanded application in the next stage.

Which is why Meta is looking to move in, and build more tools to capitalize on this initial interest. So while you may view those NFT bros as being a little overzealous, and overexcited about buying JPGs, consider that there will be more to the scope of NFTs in future.

That doesn’t mean that you should care about what image you use for your profile picture, or that you should be looking to buy up a ‘VeeFriends’ NFT drawing (please don’t). But those images are just the start of a new online marketplace.





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Instagram Expands Video Remix Option to All Videos, Not Just Reels Clips

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Instagram Expands Video Remix Option to All Videos, Not Just Reels Clips


Instagram is expanding on its TikTok-like toolset by adding the capacity to remix all videos that people post in the app, not just Reels, increasing your options for creative response and engagement.

As you can see here, now, when you’re viewing any video on Instagram, you’ll be able to tap on the ‘Remix this video’ option to create your own take on it, facilitating more participatory consumption of video content in the app.

Users can also choose to switch off remixes in their video settings.

Instagram video remix

As explained by Instagram:

“Remix gives you ways to respond to and reinvent the creative videos shared on Instagram every day, collaborate with others and get discovered by new audiences. We’re excited about how our community has embraced Remix on Reels and we hope this new feature gives people new ways to collaborate, showcase their creativity and find inspiration in the vibrant diversity of videos shared to Instagram every day.

Instagram added its Reels remix option last March, and this new functionality will greatly expand on the amount of video content that people can use to build upon with their own responses and creative takes, which, again, leans into the core use case of TikTok.

One of the biggest elements of success for TikTok has been participatory content, and essentially letting users contribute to memes, as opposed to merely consuming them.

Memes have become a key communication tool for the younger generation, providing a simple, engaging way to give their take on the various issues of the day. But till TikTok came around, meme usage was limited, as you couldn’t easily remix or re-share a meme for different purpose.

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But TikTok changed that dynamic, essentially making memes participatory, enabling all users to not only consume, but to also iterate each based on the trend. It’s the logical extension of meme culture, though no platform has been able to tap into it the way that TikTok has.

Which is why Instagram’s looking to get into the same. And while providing TikTok-like options is likely helping Instagram to retain some of its audience, and stop them migrating to TikTok instead, it’s still not the best way for the platform to regain its leadership in the space, and re-connect with younger audiences, as per Meta’s stated ambition moving forward.

Because copying features invariably means that you’re a step behind – you can’t copy something unless another platform is already doing it, and if another platform is already doing it, then you’re already missing the trend.

Young users will gravitate to the platforms that lead the latest trends. Snapchat, for example, lead the way on ephemeral content, Instagram was once the place to be for the latest visual tools and displays. TikTok is now the leader on short-form, interactive clips, and if Meta truly wants to win them over once again, it will need to get more original with its additions, providing new, must-see, and must-use ways to interact and engage.

Much of that focus likely comes back to its coming metaverse push, but I’d still prefer to see Instagram zigging when other platforms are zagging, and introducing at least some new tools and options that haven’t been ripped off from another trending app.

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But as noted, it must be working, at least to some degree, because it keeps doing it, with TikTok basically the product development department for Instagram right now.

Maybe its coming NFT display options will change this, or maybe IG has something else in the works for video content. Till then, we have more replicant functions, which may help improve overall engagement, but likely don’t give it much of a boost in terms of credibility and leadership.  





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Instagram Will Now Reduce the Reach of Posts That are ‘Likely’ to Contain Bullying of Hate Speech

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Instagram Will Now Reduce the Reach of Posts That are 'Likely' to Contain Bullying of Hate Speech


Instagram is implementing new measures that will proactively limit the reach of feed posts and stories which ‘likely’ violate its rules around hate speech, bullying and the incitement of violence, as part of its expanding efforts to reduce game and user risk in the app.

As explained by Instagram:

“Previously, we’ve focused on showing posts lower on Feed and Stories if they contain misinformation as identified by independent fact-checkers, or if they are shared from accounts that have repeatedly shared misinformation in the past. Today, we’re announcing some changes to take this effort even further. If our systems detect that a post may contain bullying, hate speech or may incite violence, we’ll show it lower on Feeds and Stories of that person’s followers.”

So how will Instagram determine whether non-reported posts might contain these elements?

“To understand if something may break our rules, we’ll look at things like if a caption is similar to a caption that previously broke our rules.”

Instagram further notes that if its systems predict that an individual user is likely to report a post, based on their past history of reporting content, it will also show that post lower in their personal feed.

Which seems pretty foolproof, right? There’ll be no new influx of ‘shadow ban’ reports or similar as a result of IG putting more reliance on machine learning to determine post reach.

Right?

Yeah, it could be somewhat problematic, and considering the efforts Instagram has gone to in the past to explain away shadow bans, it’s seems inevitable that this will lead to more accusations of censorship, bias and other criticisms of the platform as a result of this shift.

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Which is probably not such a bad payoff, if it works. In theory, this could be another key step towards limiting the spread of bullying and hate speech, both of which have no place in any public forum, and no right to amplification and broadcast via social apps. Instagram is also under pressure to improve its efforts in protecting young users from bullying and abuse, after the Facebook Files leak last year suggested that parent company Meta had ignored research which showed that Instagram can have harmful mental health impacts for teens.

Anything that can be done to stop the spread of such is, at the least, worth an experiment, while Instagram also notes that it has previously avoided implementing automated systems of this type because it wanted to ensure that its technology ‘could be as accurate as possible’ in detection.

Which suggests that it now has the required level of confidence in its processes to ensure good results. So while there will undoubtedly be more reports of mistakes, and more accusations of overreach, invoking some amendment in the constitution (always incorrect), if it works, and reduces instances of harm and mental anguish due to bullying and hate speech, it will be entirely worth it.





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