Facebook Is Growing Revenue – Don’t Compare It To Twitter Right Now:
Twitter dropped over 20 percent yesterday after its lockup period ended and early holders fled the stock. Twitter has been an interesting social media play since its ‘successful’ IPO and hitting highs weeks after the first offering, the stock has plummeted. Yesterday the stock closed at below it’s November debut at $37 and more than 10 times the daily average volume was traded at 130 million shares flipping owners.
Twitter isn’t a better social media platform than Facebook which has a better algorithm because it knows more about its users. Most Twitter account holders don’t even use their real name and it’s hard to make algorithmic associations for people who don’t know each other and as one’s list of friends grows, the less real information that can be gleaned from it. This is why Facebook’s limitation of 5,000 friends helps them serve better ads, waste less impressions and continue to keep people engaged.
Artists, businesses and others can create pages to reach those they don’t know but Twitter is largely millions of Facebook pages filled with noise and people broadcasting the uninteresting. This doesn’t mean Twitter won’t remain a powerful platform because around the world people use it to communicate and when revolutions occur as well as elections are help -people take to Twitter to share their thoughts. Twitter will need to raise its advertising acumen and make its self serve platform easier to use, change billing (clients have complained about their billing) and get more information from users. Perhaps occasional surveys, rewards for filling out information or a slightly longer signup process will help.
Facebook blew out their Q1 earnings which they announced in late April (2014) with subscriber growth and mobile advertising growing. Revenue was $2.50 billion which was an increase of 71% from the prior year and the increase in video advertising will help the bottom line. In short, Twitter and Facebook just can’t be compared right now and Twitter has a bit of catching up to do. It may be time to restart one’s Facebook share collection soon.