Congratulations for making it through the first full week of February! For the first time in a long time, everything’s coming up Twitter. The company has posted a profit, boasts a value higher than Snapchat’s parent company, and is seeing more engagement with its newish 280-character tweet length.
There’s a first time for everything, and Twitter’s hit a brand new milestone by posting a profit. AdAge reports that a focus on video and an algorithm that bumps up relevant content are giving users and brands more confidence in the social channel.
Twitter could also benefit from the update that has Facebook users seeing fewer posts from brands. But marketers looking to pivot from Facebook to Twitter might want to slow down, since Facebook still has the lion’s share of advertisers and users.
Twitter’s latest profit has also led to getting a leg up on competitor Snapchat. TechCrunch reports that Twitter shares rose by 25% yesterday, giving it a market cap of $25 billion. That puts Snapchat parent company Snap behind Twitter, with a cap of $24 billion.
But what does it all mean? Right now, not much; a difference of a billion dollars is less than one might think. But this kind of news gives Twitter reason to celebrate: not only is the company turning a profit, it’s seeing better engagement than Snapchat. And for Snapchat–a social channel that’s been steadily losing ground lately–that could be trouble.
More Characters, More Engagement?
Social media skeptics who initially panned Twitter’s 280-character count update are being proved wrong. The Verge reports that while people aren’t using all 280 characters in tweets, they are tweeting more. Twitter CEO Jack Dorsey says the social channel is “seeing more retweets, and we’re seeing a lot more mentions. And we’re also seeing people get more followers and return more often.” User adoption and retention have been sore spots for Twitter for some time now–so seeing higher engagement is an excellent sign.
The challenges now are maintaining retention and delivering for users, shareholders and advertisers. A profitable quarter and a rise in user adoption suggest Twitter’s efforts to stop harassment and improve user experience are working, but sustaining this momentum will be tough. It’s enough to make marketers cautiously optimistic about using Twitter as an advertising channel.
Which social channels are you reading about this week? Email me at firstname.lastname@example.org and tell me about it.