EC 3 Keys To Twitter's Turnaround

That said, there are three critical steps that we believe Twitter must execute at present in order to keep this momentum moving forward and to bring advertisers back into the fold.

1. Activate the Inactive

We are always looking to see new user growth when evaluating internet companies, as well as their ability to identity and expand into new market opportunities. But Twitter has over 700M users that are NOT in the MAU category - users that have left the flock, so to speak. It must find a way to reactivate those users by demonstrating (i.e., providing) compelling content and value.

Twitter's recent hint that it might try to monetize its "professional" base of business and social marketers is interesting, but nothing at this point compares to increasing the level of engagement of existing registered users (many of whom have either drifted away from social altogether or are now spending more time on Facebook (Nasdaq: FB), Snapchat, Instagram, etc.).

We'd like to see Twitter continue to improve on its number of DAUs as well, increasing growth into the +20% y/y range during 2Q 2017.

2. Verified Channelization (Lists)

Twitter has great raw discovery features, well beyond Facebook and Snapchat - its open follow and global search are unmatched. However, it lacks organized discovery and the ability to easily follow topics, types of content, or even groups of users.

Twitter's list function, where a user can group together individuals to follow, is a good start, but Twitter has never developed the ability for users to easily switch (like a channel) between lists, or to identify verified lists of value. TweetDeck, with its ability to view multiple lists simultaneously on a computer screen (something matched by social marketer Hootsuite), is probably the best bet for trying to curate, aggregate, and search tweets - but even this missed the point.

We'd like to see Twitter implement verified channels and to provide the ability to easily move (e.g., like swiping on Snapchat) between news, entertainment, sports, and politics (and perhaps even customer support, an area where Twitter has great potential but limited offerings). This will be a critical enabler for the next step: live video.

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Kurt Benson 4 years ago Member's comment

Excellent job highlighting #Twitter's possible potential and shortcomings. I think you've hit the nail on the head regarding the problems the company needs to overcome. But being that they've yet to figure it out, despite having more than enough time to do so, makes me wary of $TWTR.

Fred McClimans 4 years ago Author's comment

Thanks, Kurt. I'm a bit wary as well, but view the Bloomberg deal (and others) as a sign the team is at least gaining a bit of focus in the right direction. If Twitter can conquer the channelization and video aspects, I would expect the user activity gains to follow (assuming bots & trolls are addressed). It is a big change, but at this point, I believe there are not many other viable options left.