Twitter’s Chief Financial Officer Ned Segal has revealed that a third of the users of his company’s social media platform abandon their accounts every year.
Segal was speaking at an investor conference which was held in Mid-November when he revealed that roughly 60 million accounts go completely inactive every year. The CFO also revealed that about 2 million users reactivate their Twitter accounts after more than a month of inactivity or they end up creating new accounts. He also revealed that roughly one-third of the 2 million users are new users that were previously not registered on the microblogging platform.
Overall, Twitter has roughly 243 million new users on its social platform every year. The company’s former COO, Anthony Noto revealed in 2016 that the platform had a total of 700 million active users every year. This means that 35 percent of the users on the microblogging platform are new. This also means that Twitter retains about two-thirds of all the users gained in each year.
“Twitter has 700 million active users on an annual basis,” stated Noto.
Poor user growth has been one of biggest problems for the company and it also seems to be a recurring narrative especially compared to other social media platforms such as Snapchat and Facebook. For example, Facebook’s user growth has been at 16 percent while that of Twitter has lagged behind at a mere 4 percent. Instagram has bigger numbers with the user growth rate impressively surpassing 33 percent.
Poor user retention has also been a huge problem for Twitter and this is one of the reasons it has not been able to monetize its user base as well as its rivals. The social media company makes most of its revenue from data licensing and advertising. Unfortunately, 60 million monthly users are not enough for the company to secure enough user data. Twitter’s ad revenue has also been on the decline over the past four consecutive quarters, thus adding to the company’s concerns.
Twitter’s management has been hard at work to try and remedy the situation through a variety of solutions. One of the most common solutions is the focus on video content which has been evident throughout the year.