Apptopia Trump Twitterkantrowitz Bigtechnology
In January 2021, Twitter permanently banned former US President Donald Trump from its platform, citing the risk of further incitement of violence after the Capitol Hill riot. The move sparked a heated debate about free speech and social media regulation. However, it also raised questions about the impact of Trump’s absence on Twitter’s user engagement and revenue. In this article, we will examine the data provided by Apptopia, a mobile app intelligence firm, to analyze the effect of Trump’s ban on Twitter usage and explore the implications for businesses and investors.
The Steady State of Twitter Usage
According to Apptopia’s data [1], Twitter’s daily active users (DAUs) remained stable after Trump’s ban. In the week following the ban, Twitter’s DAUs increased by 1.2 million, or 1.8%, compared to the previous week. The average time spent on the app per user also increased slightly, from 24.2 minutes to 24.6 minutes. These figures suggest that Trump’s absence did not significantly affect Twitter’s user base or engagement.
However, it is worth noting that Twitter’s DAUs had been growing steadily before Trump’s ban, with an average weekly increase of 1.9 million in Q4 2020 [2]. Therefore, it is possible that Trump’s ban offset some of the growth momentum that Twitter had been experiencing. Moreover, Apptopia’s data only covers mobile app usage, which accounts for about 80% of Twitter’s total usage [3]. It is unclear whether Trump’s ban had a different impact on Twitter’s desktop or mobile web traffic.
The Impact on Twitter Revenue
One of the concerns raised by Trump’s ban was its potential impact on Twitter’s revenue. Trump was a prolific Twitter user, with over 88 million followers at the time of his ban [4]. His tweets often generated a lot of engagement and media attention, which could translate into ad revenue for Twitter. Without Trump, some analysts speculated that Twitter’s user engagement and ad revenue could decline.
However, Apptopia’s data suggests that Twitter’s revenue has not been affected by Trump’s ban [1]. In the week following the ban, Twitter’s daily revenue per user (DRPU) increased by 3 cents, or 7.5%, compared to the previous week. The DRPU measures the average amount of revenue that Twitter generates per user per day, taking into account both ad revenue and other sources of revenue such as subscriptions and data licensing. The increase in DRPU suggests that Twitter’s advertisers did not reduce their spending on the platform after Trump’s ban.
Moreover, Twitter’s Q4 2020 earnings report showed that the company’s revenue and profit exceeded analysts’ expectations [5]. Twitter’s revenue for the quarter was $1.29 billion, up 28% year-over-year, while its net income was $222 million, up from a net loss of $1.14 billion in Q4 2019. These figures indicate that Twitter’s business was thriving even before Trump’s ban, and that the ban did not have a negative impact on its financial performance.
The Implications for Businesses and Investors
The data provided by Apptopia suggests that Trump’s absence did not have a significant impact on Twitter’s user engagement or revenue. However, this does not mean that businesses and investors should ignore the broader trends in social media usage and regulation.
Firstly, the rise of alternative social media platforms such as Parler and Gab, which attracted many of Trump’s supporters after his ban, highlights the growing fragmentation of the social media landscape [6]. Businesses and investors need to be aware of the risks and opportunities associated with this trend, such as the potential for niche marketing and the challenges of content moderation.
Secondly, the regulatory scrutiny of social media platforms is likely to intensify in the coming years, as governments around the world seek to address issues such as hate speech, misinformation, and privacy violations [7]. This could lead to stricter rules and enforcement actions that could affect the user experience and business models of social media companies. Businesses and investors need to monitor these developments and adapt their strategies accordingly.
Conclusion
The data provided by Apptopia suggests that Trump’s ban did not have a significant impact on Twitter’s user engagement or revenue. However, this does not mean that businesses and investors should ignore the broader trends in social media usage and regulation. The rise of alternative social media platforms and the regulatory scrutiny of social media companies are likely to shape the future of the industry. Therefore, businesses and investors need to stay informed and agile to succeed in this dynamic environment.
