New data reveals a significant decline in user engagement and advertiser interest on the social media platform formerly known as Twitter, now referred to as X, during its first year under the ownership of Elon Musk.
Engagement metrics have shown a consistent downward trend, according to SimilarWeb. App downloads globally fell by around 38% from October 2022 to September 2023. In the US, mobile app downloads saw an even more substantial decline of 57% during the same period.
Similar trends were observed in user activity, with a global monthly active user decrease of 14.8%, and in the US, it was even higher at 17.8% for September year-over-year.
Average daily time spent per user fell by 2% globally in the third quarter of 2023. User churn, or users abandoning the app, increased by over 30% year-over-year in September. Web traffic also suffered, declining by 7% globally and 11.6% in the US in the first nine months of 2023 compared to the same period in 2022.
The only metric that went up was the traffic to Musk’s personal profile and posts, which surged by 96% year-over-year in September.
Despite X CEO Linda Yaccarino’s claims of widespread user engagement, concerns about brand safety and misinformation have driven advertisers away from the platform. X’s advertising business has taken a major hit, with Musk revealing a 60% drop in the U.S. ad business in September.
Estimates suggest that X’s ad business is expected to generate $2.9 billion this year, down from approximately $4.14 billion in 2022.
While other social networks have also seen declines in usage and engagement, with a 3.7% year-over-year dip in overall traffic to the top 100 social networks globally in September, X’s decline is more pronounced. In contrast, TikTok saw a substantial 22.8% increase in global web traffic during the same period.
Investors had high hopes that Musk’s involvement would boost X’s popularity and value, but, a year on, they have yet to be proven right. Fidelity, one of the equity backers, had marked down Twitter by over 61% through August. Banks are also expected to take a 15% discount on their debt tied to the platform.
Information for this story was found via SimilarWeb, the Wall Street Journal, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
2 Responses
This article provides an interesting perspective on the impact of Elon Musk’s acquisition of Twitter, now referred to as X. It’s fascinating to see how the platform’s engagement metrics have shown a consistent downward trend, with app downloads globally falling by around 38% from October 2022 to September 2023. The decrease in user activity, with a global monthly active user decrease of 14.8%, and in the US, it was even higher at 17.8% for September year-over-year, is cause for concern.
However, it’s intriguing to note that despite these declines, traffic to Musk’s personal profile and posts surged by 96% year-over-year in September. This suggests that while the platform as a whole may be experiencing a downturn, Musk’s personal popularity has almost doubled.
It is clear to me that this narcissist is Xtremely pleased to be so popular. Nothing matters more to him. Not even his business success. Classic negative attention seeking syndrome. Oh please go away!