Twitter’s Dark Cloud Has a Silver Lining
Twitter Lite adoption is encouraging
Though there may not be much to love in Twitter’s (TWTR) recently released 2Q17 results, there were a few positive developments. These developments are worth highlighting because they could make a huge difference for the company.
As Twitter’s MAU (monthly active user) base didn’t grow between 2Q16 and 2Q17, the company is making strides towards recruiting subscribers in the developing world. Earlier this year, Twitter introduced Twitter Lite, an economic version of its social media app, in India. As Twitter Lite consumes less battery energy and Internet data, it is faster to access in places where electricity and mobile connections are a problem. Twitter CEO Jack Dorsey, who also runs payment company Square (SQ), recently stated that the adoption of Twitter Lite was looking “really positive.”
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War on trolls starting to pay off
Twitter’s crackdown on troll accounts or abusive activities on its platform is also progressing well. The company said that, since last year, it has increased its actions on abusive accounts by ten times more per day. Twitter’s feeble subscriber and revenue growth are partly due to abuse on the platform. Therefore, Twitter’s actions to rid its platform of abusive users are closely watched.
Ad engagement up 95%
The above chart shows Twitter’s advertising revenue trends. After Twitter stepped up its crackdown on abusive accounts, it reported strong ad engagement in 2Q17. While ad engagement rose an incredible 95%, the increase didn’t translate to growth in advertising revenue, which dropped 8%. In its bid for advertisers’ wallets, Twitter is facing stiff competition from Facebook (FB), Snap (SNAP), Alphabet’s (GOOGL) Google, and Microsoft’s (MSFT) LinkedIn.