Online marketers have to be very picky about where they invest their time. If Twitter is dying, we want to know sooner rather than later.
It’s might be a little worrying, if you’re deep in the Twitter game, watching monthly active users decline through 2018, and seeing Facebook outperform these numbers by over 10x.
So it’s critical to form an opinion on where the platform is heading by looking at the big picture.
To be fair, with 24% of Americans on the platform, and over 300 million monthly active users, Twitter offers up a lotof opportunity going into the future.
Are Twitter Statistics Positive?
Twitter User Statistics
Yes, monthly active users are relatively stagnant—even on the slight decline through multiple quarters.
In contrast, daily active users have increased consistently every quarter since 2016.
How is this possible? Daily users have increased by over 5% YoY since 2016, yet their monthly active users still aren’t going up?
Executives attribute this metric imbalance to bot purges, and some technical hiccups the platform has faced over the past few years.
In an attempt to attract more advertisers, Twitter is trying to increase user engagement by getting rid of spam and bots as best they can.
Twitter Advertising Statistics
Twitter’s efforts to increase the quality of their platform are working as planned.
According to Twitter’s own Q3 internal data there’s a 50% increase YoY in ad engagements and a 14% decline YoY in cost per engagement.
These are incredible numbers for advertisers looking for an edge in a period where CPCs are increasing across the board for paid ads.
Is Twitter Dying?
In short, no. Its growth trajectory looks a lot different than Facebook’s, but it will be incredibly valuable for marketers in the future.
It’s interesting to see just how different both stocks have performed since their IPOs.
TWTR’s IPO was November 7, 2013 and Facebook’s was May 18, 2012.
Since then FB has gained close to 200% on its initial valuation while TWTR has lost close to half of its stock price.
It’s clear to see how much Facebook dwarfs its smaller rival. With yearly revenue sitting at $51.90 billion, that’s over 15x larger than Twitter’s.
While some financial analysts say FB is the better investment today, many others are adding TWTR to the portfolio. And everyone is impressed with Twitter’s profitability and firm financial footing.
Their ability to turn 26% of revenue into free cash flow should be an attractive and impressive statistic to any investor.
The majority of analysts say TWTR stock is a buy or a hold. JP Morgan even called it a top pick in mid 2018.
Twitter’s Damaged Public Image
There’s no doubt Twitter suffered in recent years in part because of its damaged reputation.
There are many claims the platform causes divisiveness. The idea was birthed during 2016 US election.
According to the Washington Post, Jack Dorsey admitted the platform has a “left-leaning bias”. And multiple parties have accused Twitter of shadow banning accounts using their own political bias and discretion.
This may be part of the reason we haven’t seen the social network grow as quickly its competitors. Or it could be another reason altogether.
Considering 80% of users are from outside of the United States, attributing platform growth to anything regarding the US election drama seems like a bit of an overstatement.
Does Twitter Have A Viable Use-Case?
At the end of the day, while Twitter’s competitors are other social networks, its use-case is unique, which is how it gained so many users in the first place.
It’s safe to say that Twitter is more valuable to more people than Google plus ever was.
The networks strongest arena is arguably news.
Advertisements on the platform see a 4% increase in engagement during news events.
This is just one statistic indicating the platform’s biggest value-add is its ability to succinctly deliver news to its end user.
No matter what people’s opinions are about the network, the user base is massive and many metrics are pointing up. That being said we have little reason to believe Twitter is dying.