Why TWITTER is Failing - 2 more Directors quitting - Failure to make large enough revenue - A Lesson-Case in Social Media!
The Microblogging service only have two sources of income and none of them are any good for a company that is extremely over-valued.
- Verification
- Advertising
To advertise on Twitter is a hard learning-process. They have rules and regulations in place that practically makes most "promoted tweets" to go against twitters policies. I have tried - Marketing on Twitter just does not work, it is like the company hates money and want to cherry-pick what they want advertised without even considering their income potential.
Facebook on the other hand - they love money, and have practically built a BOOST-button for everything, and if you do not pay for BOOST, your posts are going nowhere - their "traffic-machine" make sure you cannot become a "mass-media" on the blue page. Just think about why they put a limit on 5000 Friends for example, they don´t want you to outgrow them, they do not want anyone to have influence on Facebook, they only want money, and they are great at it.
Google Has been and still are the best on advertisement - Not only do they provide great content-hubs like Google Search, Gmail and Youtube - but their Adsense/Adwords are so integrated into everything on the Internet that they only need to maintain their position and like Facebook, keep buying up competition if there is any.
Back to the Twitter-Case
Adam Bain was the first director to leave Twitter, which indeed was a big red flag to the market in itself. However, now technology-director Adam Messinger and Production-Director Josh Mcfarland also has quit - another two big red flags that Twitter is in big trouble, and investors of course are starting to see the "brainpower" of their company disappearing from the tech-company who has fallen 75% in value over the last three years.
CEO of Global Equities Research, Trip Chowdhry - wrote earlier this year that Twitter-fundamentals are not even worth $10, which would price the company to 7 Billion dollars
What can we learn from Twitters mistake?
First let us recognize that we - steemit - is a micro-startup compared to the size of any of our competitors. We have the future ahead of us and many would argue that our $35 Million Dollar market-cap is about right for now. We are neither under nor overvalued but in a beta-testing and consolidation-period which we have all participated in, written about and debated loudly or quietly depending on what steemit-community you feel most at home in, and we have made great progress and will continue to do so as we grow together into the future.
SteemPower holders (investors without the possibility to quickly trade their positions) with long term perspective will of course need a passive stream of income/dividend from real revenue-streams, and Advertisement will play a big part in that scenario as we grow not only in user-base, but also in reader-base which will be visiting old articles forever and ever searching for things they are interested in, finding it here on steemit shared 50/50 between SteemPower-holders and bloggers, which will make it even more attractive to write more, post more, contribute with more content for long-term earnings on top of short term earnings from upvotes only.
This is what we can learn from our competitors - Be excellent at making money for our users and investors, no cherry-picking but instead make it extremely easy to advertise with Steemit either via our own solution, or through established solutions as I have written about before.
Our net focus should be on these two things - blogger-growth and revenue-streams for both bloggers and investors/sp-holders. If we can manage these two things and keep focused, there is no telling how high our STEEM-price will become - surely a lot more then it is today.
I never thought the day would come when I'd want to see more ads
Yeah, same here :) hehe
@fyrstikken, if investors aren't getting good return on investment, company will disappear. Steem On friend.
Twitter fails because the are a Liberal-only social media site...which isn't a very sociable approach to being a useful site. This single facet of the platform alienates in excess of 50% of potential users. Their new policies on suspending Conservative accounts, or those that favor Conservatism, sheds enormous light on why they are failing as well...and you are correct, they are leaving billions of dollars a year on the table, rather than taking it to the bank. I, for one, quit using Twitter almost as soon as I started using it...and for several of the reasons you stated...I can't wait to see them crash out completely...maybe it will serve as a warning to future social media websites on how to properly operate an online business!
I think this is a very pertinent point for Steemit. There are a large number of people who are "idealists" on here, myself included and particularly at least one of the founders. This describes the current demographic but will not play to a wider more mainstream demographic. I think "Libertarianism" is currently the most popular idea around these parts, but this will change. If allowed to grow organically I believe the end result would be more akin to a Liberal Democratic Republic online with its own currency and eco-system. If you take this "experiment" to it's logical conclusion, then I think this could eventually drain all the value of all fiat currency into this eco=system, replacing all fiat with Steem. Once this happens, we will actually have a functioning global currency, equitable and transparent to all complete with economy and global de-centralised consensus and governance. The world's citizens could truly govern themselves much more directly than current representative Democracy.........perhaps?
well, that is also one way to see it. I do believe twitter censoring has damaged their brand beyond repair. Same with reddit and facebook.
People want and need a place to be seen and heard.
Advertising is not always bad - some fantastic creativity emanates from the hotshops of Saatchis, DDB, Grey, etc. Perhaps limiting them to 140 chracters is apt given your Twitter theme and a 14 second video if you choose to watch - and a flag if you can justify your revulsion!
Thoughts and comments ...
Namaste!
Advertisement is perfect to inform consumers about products and services that is on the market, and we have plenty of space left, right, top and bottom.
I didn't want to buy twitter anyways. lol :)
hehehe, me neither.
Up till now, I haven't seen any adverts on Steemit, are there plans to start with it?
We have talked about it on @steemspeak radio in an AMA with the CEO, and on @steemfest there was a slide behind @ned scott that contained the words "Advertisement revenues". Right now we are all waiting for the official @steemit roadmap to be released so I guess we will have to wait and see :)
Thanks for the feedback
TY for the info.
I believe some things are out of whack on Steemit and need to be addressed, some of which was near the end of your post.
Good stuff, thanks again.
hi boss, haha, i resteemed to read this later. still at work. i am suppose to be on steemspeak already but not home yet. i was trying to complete my post hurriedly. formatting wasnt too good but cos of time zone, i had to post it. i wont be getting home till much later and no way to get on discord for now here thus i will leave the link here: https://steemit.com/life/@surpassinggoogle/should-the-extrajudicial-killings-in-the-philippines-duterte-s-war-on-drugs-stop-contains-some-graphic-content
How would the advertising work, would there be pop-ups? Or would people put them on their pages, or both? Or maybe it's something I'm not quite visualizing...I've been doing my best to find knowledgeable people on steemit, you are obviously one such person, tagging along with you now :)
Doesn't Pres. Elect Trump have stock in twitter? After the inauguration won't he make a bold media announcement saying he will continue to use twitter and by doing so increase the stockvalue? I enjoyed your post... btw I've never used twitter.