Twitter did not have as many users as it thought – a difficult situation that may actually motivate the company to seriously consider accepting Elon Musk’s proposal that the company privately take a $ 44 billion deal. In terms of revenue from Twitter in Q1 2022 this morning, the company admitted that it was excessive counting the number of users of its service for at least 3 years due to a technical glitch involving accounts.
In ay income release, Twitter explained that it launched its account linking system in March 201 which allowed users with more than one Twitter account to link to its user interactions, allowing them to easily exchange their identities different. These various accounts belonged to one person, obviously, but continued to be counted in private mDAUs – or “active daily users for money available.”
The mDAU estimate was already there abnormal self-discovery how to measure service users. Twitter came up with the idea after struggling to show growth through quarterly active user measurements. Instead, she said the mDAU dimension will represent users who logged into Twitter daily through their website and applications, who were able to watch her ads. It is noted, however, that the metric will not be the same as the daily active user disclosures of other companies, as they will often use a much larger scale including users who do not see ads.
This measure is meant to give advertisers a better idea of how many people on Twitter are worthy of being targeted for their marketing messages within a certain time frame. And as ads continue to fuel Twitter business, accounts excessively In terms of revenue, it was an important meter in terms of Twitter health.
Unfortunately, she was wrong.
Twitter said it had redesigned the mDAU meter numbers over the past quarter where it found it was excessive, and improved the total. Its results show that they are over-reporting mDAUs everywhere from 1.4 million to 1.9 million, depending on the quarter. (The company noted that retrieval data will not be available before Q4 2020 due to its data retention policies, but said its estimate suggested that early modifications would not be greater than those seen in Q4 2020 .)
As you can tell from the chart, the overall use of Twitter has grown steadily, as well as counting excessively – ending at an excess of nearly 2 million mDAUs from more than the company owned.
Such a change would easily be appropriate for a rival social networking site like Facebook – Meta has now reported requests from its family to see 2.87 billion users in Q1 2022, for example, Facebook alone saw 1.96 billion. But it does more with lesser services like Twitter which has historically struggled with equal user growth. In fact, user growth was a thorn in his side and he invented the new meter to hide his issues in the first place.
Although adjusted, Twitter finished quarterly with an estimated 229 million mDAUs, up 15.9% over the same period last year.
However, the company has set a high target of reaching 315 million mDAUs by 2023 along with double revenue. The mDAU goal would represent about 20% A total annual growth rate of 152 million mDAUs was reported in Q4 2019. Twitter believed it could get there with its new product development, many of which were lucrative – such as Super Follow subscriptions, Twitter Spaces tickets, and Twitter Blue subscription service. But it is clear that Twitter is still too far to pay for these investments, not only in dollars and cents, but also in attracting new people to the network.
This is not the first time Twitter has reported negative measurements around users, but it is the first time it has had an impact on Twitter since it was converted to mDAUs. The company in Q3 2017 admitted to exceeding MAU by 1 to 2 million, at a time when its MAU base was over 300 million.
The error can put Twitter even in a more dangerous situation with its advertisers. Elon Musk preached a plan to accept the “free speech” policy on Twitter, which often means a more tolerant attitude towards abuse, intimidation and hate speech. That is not something that brands want to market themselves.
There are signs that the ads are also felt.
AdAge said The immediate reaction from the advertisers was overwhelming and confusing. The brands have been contacting agencies to help them understand and prepare for what’s to come on Twitter. One executive said there were also indications that advertisers were willing to stop spending after Musk’s acquisition, if needed.
Twitter, responding, Emails sent to advertisers insisting that it will be a safe haven for brands after Musk’s takeover, FT said. She has heard similar concerns from advertisers who are taking the “market and see” approach now, before adjusting their budgets. One group of advertisers is very concerned, however: car manufacturers. They fear that their marketing campaigns are now spilling over into their rival, Tesla, which Musk also owns. EV Fisker CEO Henrik Fisker has already deleted his Twitter account, for example.
While Twitter guarantees it, it is the advertisers who advertised to know that they can not really protect if Musk decides to make radical changes. A company that relies on advertising revenue as Twitter is now, wonders why they agree on a deal free speech absoluteist in charge. The erroneous counting of Twitter by users helps, in part, to explain why it took the deal – because the growth he believes he has achieved is less than he thought.