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Twitter Says User Numbers Are Up Amid COVID-19 Lockdowns, But Warns of Revenue Impacts

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twitter says user numbers are up amid covid 19 lockdowns but warns of revenue impacts

As you might expect, Twitter is seeing a lot more usage amid the COVID-19 lockdowns across the world – but that doesn’t, however, mean that Twitter’s making more money as a result, according to a new update from the company.

As reported by Bloomberg, Twitter has this week withdrawn its revenue and operating income guidance for the first quarter of 2020, as well as its outlook for expenses, headcount, and capital expenditures for the full year due to the rising impact of COVID-19.

As per Twitter:

“While the near-term financial impact of this pandemic is rapidly evolving and difficult to measure, based on current visibility, the company expects Q1 revenue to be down slightly on a year-over-year basis. Twitter also expects to incur a GAAP operating loss, as reduced expenses resulting from COVID-19 disruption are unlikely to fully offset the revenue impact of the pandemic in Q1.”

Those reduced expenses likely relate to the reduction in human moderators who have been sent home to help limit the spread of COVID-19. In their place, Twitter will increasingly rely on automation tools for reviews and approvals for the time being – but within that, it seems likely that Twitter will also see reduced costs, overall, depending on any potential compensation package in place for those workers.

So overall, Twitter is predicting broader revenue impacts – yet, at the same time, Twitter usage is rising.

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Further into its update, Twitter says that its monetizable DAU (mDAU) count is up to 164 million for the quarter, a 23% increase Q1 2019 (and up 8% from its most recent performance update).

So, theoretically, Twitter should be able to display more ads right now, not less, right?

The platform didn’t provide a detailed breakdown of the impacts here, other than noting that:

“Twitter had a strong start to the year before the effects of COVID-19 began spreading more broadly, including a successful Super Bowl and overall strength in the US. The COVID-19 impact began in Asia, and as it unfolded into a global pandemic, it has impacted Twitter’s advertising revenue globally more significantly in the last few weeks.”

The impact is likely coming from smaller advertisers and businesses that have either been shut down or restricted, and which are now switching their focus onto how they can simply stay in operation, as opposed to spending on ads. The rolling closures will also mean a significant reduction in ad spend from restaurants, cinemas, events, etc. While Twitter is seeing more usage, it makes sense that it would also be seeing less ad demand, at least in this initial stage of the lockdown period.

That may change as people get more accustomed to this changed environment, but Twitter is moving early to advise of the potential impacts. That could also have something to do with the fact that CEO Jack Dorsey was effectively saved from an effort to oust him by activist investor group Elliott Management Corp. earlier this month, after Dorsey and Co. made a deal to keep him in the job, contingent on strict performance improvements.

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Among those measures, Dorsey needs to increase usage and “accelerate revenue growth on a year-over-year basis”, or he’ll once again face removal from the top job. Given the situation, the parameters of that deal will likely need to change, but by posting an update on the potential revenue impacts, Dorsey may also be getting ahead of any such action, giving himself more time.

It’ll be interesting to see how digital advertising trends shift amid the COVID-19 lockdowns as the weeks and months go on. More people will spending more time online, and more businesses will subsequently be looking to re-allocate their ad budgets to reach them, which will likely see increased opportunities for all digital platforms. But you do have to balance that against the potential impacts of closed businesses also being absent from the ad market.

The full impacts are difficult to measure at this stage, but as the shutdowns and restrictions drag on, we’re likely to see significant shifts in the digital advertising landscape.

Socialmediatoday.com

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

In a recent announcement, Snapchat revealed a groundbreaking update that challenges its traditional design ethos. The platform is experimenting with an option that allows users to defy the 24-hour auto-delete rule, a feature synonymous with Snapchat’s ephemeral messaging model.

The proposed change aims to introduce a “Never delete” option in messaging retention settings, aligning Snapchat more closely with conventional messaging apps. While this move may blur Snapchat’s distinctive selling point, Snap appears convinced of its necessity.

According to Snap, the decision stems from user feedback and a commitment to innovation based on user needs. The company aims to provide greater flexibility and control over conversations, catering to the preferences of its community.

Currently undergoing trials in select markets, the new feature empowers users to adjust retention settings on a conversation-by-conversation basis. Flexibility remains paramount, with participants able to modify settings within chats and receive in-chat notifications to ensure transparency.

Snapchat underscores that the default auto-delete feature will persist, reinforcing its design philosophy centered on ephemerality. However, with the app gaining traction as a primary messaging platform, the option offers users a means to preserve longer chat histories.

The update marks a pivotal moment for Snapchat, renowned for its disappearing message premise, especially popular among younger demographics. Retaining this focus has been pivotal to Snapchat’s identity, but the shift suggests a broader strategy aimed at diversifying its user base.

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This strategy may appeal particularly to older demographics, potentially extending Snapchat’s relevance as users age. By emulating features of conventional messaging platforms, Snapchat seeks to enhance its appeal and broaden its reach.

Yet, the introduction of message retention poses questions about Snapchat’s uniqueness. While addressing user demands, the risk of diluting Snapchat’s distinctiveness looms large.

As Snapchat ventures into uncharted territory, the outcome of this experiment remains uncertain. Will message retention propel Snapchat to new heights, or will it compromise the platform’s uniqueness?

Only time will tell.

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Catering to specific audience boosts your business, says accountant turned coach

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Catering to specific audience boosts your business, says accountant turned coach

While it is tempting to try to appeal to a broad audience, the founder of alcohol-free coaching service Just the Tonic, Sandra Parker, believes the best thing you can do for your business is focus on your niche. Here’s how she did just that.

When running a business, reaching out to as many clients as possible can be tempting. But it also risks making your marketing “too generic,” warns Sandra Parker, the founder of Just The Tonic Coaching.

“From the very start of my business, I knew exactly who I could help and who I couldn’t,” Parker told My Biggest Lessons.

Parker struggled with alcohol dependence as a young professional. Today, her business targets high-achieving individuals who face challenges similar to those she had early in her career.

“I understand their frustrations, I understand their fears, and I understand their coping mechanisms and the stories they’re telling themselves,” Parker said. “Because of that, I’m able to market very effectively, to speak in a language that they understand, and am able to reach them.” 

“I believe that it’s really important that you know exactly who your customer or your client is, and you target them, and you resist the temptation to make your marketing too generic to try and reach everyone,” she explained.

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“If you speak specifically to your target clients, you will reach them, and I believe that’s the way that you’re going to be more successful.

Watch the video for more of Sandra Parker’s biggest lessons.

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Instagram Tests Live-Stream Games to Enhance Engagement

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Instagram Tests Live-Stream Games to Enhance Engagement

Instagram’s testing out some new options to help spice up your live-streams in the app, with some live broadcasters now able to select a game that they can play with viewers in-stream.

As you can see in these example screens, posted by Ahmed Ghanem, some creators now have the option to play either “This or That”, a question and answer prompt that you can share with your viewers, or “Trivia”, to generate more engagement within your IG live-streams.

That could be a simple way to spark more conversation and interaction, which could then lead into further engagement opportunities from your live audience.

Meta’s been exploring more ways to make live-streaming a bigger consideration for IG creators, with a view to live-streams potentially catching on with more users.

That includes the gradual expansion of its “Stars” live-stream donation program, giving more creators in more regions a means to accept donations from live-stream viewers, while back in December, Instagram also added some new options to make it easier to go live using third-party tools via desktop PCs.

Live streaming has been a major shift in China, where shopping live-streams, in particular, have led to massive opportunities for streaming platforms. They haven’t caught on in the same way in Western regions, but as TikTok and YouTube look to push live-stream adoption, there is still a chance that they will become a much bigger element in future.

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Which is why IG is also trying to stay in touch, and add more ways for its creators to engage via streams. Live-stream games is another element within this, which could make this a better community-building, and potentially sales-driving option.

We’ve asked Instagram for more information on this test, and we’ll update this post if/when we hear back.

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