In today's episode, we'll discuss the ripple effects of Jack Dorsey's departure from Bluesky and what it signifies for social media's future. We'll touch on Reddit's impressive user growth and revenue surge in the first quarter. Find out why Instagram is now edging out TikTok when it comes to video-based user acquisition. Learn about the new feature from Threads that lets creators see how many people are viewing their posts. And we'll delve into the startling report indicating that publisher referrals from Facebook have halved. Stay tuned for all this and more on Creator Daily.
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Jack Dorsey, the former CEO of Twitter, now known as X, has confirmed his departure from Bluesky, a decentralized social media project. Dorsey, who still owns shares in Twitter, will no longer play an operative role in social media but remains committed to his other ventures. Notably, he will focus on Block, formerly Square, which includes a point-of-sale business and crypto-related bets, with a particular interest in Bitcoin's potential impact in Africa.
Dorsey's management style has been criticized by former employees of Block and Twitter as detached, and some suggest that his leadership lacked strength and foresight. His departure symbolizes the end of an era; social media has evolved to take on more serious economic and social responsibilities requiring mature leadership—a contrast to Dorsey's unconventional style. Social media CEOs like Mark Zuckerberg and Evan Spiegel have evolved, reflecting the industry's growth into a legitimate business sector.
While Dorsey has supported Elon Musk's involvement with Twitter and seems to align with Musk's critical view of the company's past management, his exit from Bluesky points to the significant changes in what social media once represented. It also emphasizes a point where idealism must meet the demands of capitalism, a junction where Dorsey has lingered for quite some time. With his latest move, he chooses a path that leans away from direct involvement in the industry he once helped shape, taking a backseat to focus on other interests.
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It's been a significant quarter for Reddit as the company has just delivered its first quarterly performance update since becoming a publicly listed company. The platform is experiencing a surge in user engagement, hitting an all-time high with 82.7 million daily active users, marking a 37% increase from the previous year. Revenue-wise, things are looking up with a substantial 48% year-over-year increase, translating to $243 million for the quarter.
However, it's worth noting that while daily active users have hit a peak, this doesn't necessarily represent the highest user activity Reddit has ever seen. In the past, around 2019, the monthly active users were reported at 430 million, which could suggest that daily active numbers had potentially been much higher at some point. But since Reddit has shifted its reporting standards to focus on daily metrics, this is the highest they've reported within that context.
Despite these gains, not everything in the report is rosy. The bottom line shows Reddit operating at a $575 million loss, mainly attributed to increased costs from stock-based compensation and related taxes following its IPO.
As Reddit continues to evolve, attracting more users and refining its revenue streams remains vital. The platform's international growth efforts and developments in ad options are proving to be key strategies in this effort. Reddit may also be benefitting from a user migration from X, as the platform becomes increasingly important for brand insights and genuine product discussions.
Looking ahead, it's clear Reddit is on an upward trajectory, even considering the short-term financial setbacks. As they work towards restructuring their business for better revenue potential, the focus will be on how they can continue to draw in users and establish themselves more firmly in the competitive social media landscape.
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Hey there! In a recent survey, Instagram has come out on top over TikTok as the platform of choice for video-based user acquisition among marketers. A whopping 79% of survey participants said they'd allocate at least three-quarters of their budget to Instagram when divvying up their user acquisition spend. TikTok landed the remaining quarter, despite 53% of those surveyed using both platforms in 2023.
This preference may be due in part to Instagram's advertising ecosystem, which may be seen as more mature and accommodating to marketers. The survey, conducted by Zoomd prior to the U.S. Congress pushing TikTok to drop its Chinese ownership or face a ban, also brought some other interesting insights to light. For instance, half of the mobile marketers have leveraged artificial intelligence to boost their user acquisition campaigns. What's more, influencers and creators continue to be essential, with 56% employing them in 2023 for user acquisition – and swings towards greater investment in such content creators this year.
The survey did highlight some challenges as well, particularly the struggle mobile marketers face with new privacy-driven tracking changes on iOS and Android. Only a small proportion are primarily using first-party data, but budgets for retargeting and retention campaigns are on the rise. It also painted an optimistic picture for user acquisition budgets, with over half the respondents looking to crank up their spending this year.
Lastly, when it comes to making money from their apps, in-app purchases remain the most popular method among 81% of respondents. Close behind, half of the marketers utilize in-app advertising, and 38% depend on payments for downloads or subscriptions. So it seems, when it comes to user acquisition, Instagram still has that captivating pull for marketers.
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Social media platform Threads has introduced view counts on individual posts, a feature similar to what Elon Musk's X rolled out back in 2022. Now, users on Threads can see how many times their posts have been viewed, which appears at the top when you tap on a thread. Adam Mosseri, the chief of Instagram and Threads, believes this provides crucial context for users trying to gauge their reach, beyond just likes and comments.
However, while these stats could reassure users that their content isn't being hidden or restricted, it also poses a risk. There's a chance that you could see thousands have viewed your post, but none engaged with it, which may not be the motivational push some are hoping for. It's possible this could even dissuade users from posting if they observe high viewership but low engagement.
The new feature is part of an ongoing trend in social media to provide more detailed analytics to users, especially those looking to enhance their visibility and content strategy. Even so, the impact of view counts on user behavior and content creation remains to be seen, as social media platforms continue to experiment with ways to increase user engagement and content sharing.
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A new report released by Chartbeat and Similarweb indicates a significant drop in Facebook's referral traffic to publisher websites. The data, covering 792 news and media sites, shows a 50% decline in Facebook referrals over the past year, an ongoing trend that points to Meta's strategic shift away from news content. Since 2018, traffic from Facebook to news sites has plummeted by 58%, from 1.3 billion to just 561 million in the last month.
This trend has particularly affected smaller media players, who have seen a substantial decrease in traffic from Facebook. Meta has been actively reducing news content in its apps, ending its Facebook News project in December last year and announcing a reduced reach for political content. The company is focusing on AI-recommended videos in user feeds instead, moving away from prioritizing user engagement metrics like comments and likes, and leaning more on time spent as a measure.
This change is part of a broader strategy shift following public feedback suggesting a desire for less political content, a sentiment further reinforced after Mark Zuckerberg's Congressional hearings post-Capitol riots. By steering clear of news and political content, Meta aims to present a more positive user experience and decrease its regulatory scrutiny.
For news publishers, the decline in Facebook referrals could be challenging financially, yet the shift might be beneficial overall for the state of social media. Meta's pivot reflects a broader industry movement to reduce the spread of misinformation and avoid politically charged content. The company's approach, mirrored in its new app Threads, focuses on upbeat and entertainment-based content, which seems to be resonating with users. Despite the challenges for publishers, Meta's transition might lead to a more positive and engaging experience for social media users overall.
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That's a wrap on today's episode of Creator Daily. I'm your host, Michael, and it's been an absolute pleasure sharing the latest news, strategies, and trends from the creator landscape with you.
Remember, if you want to dive deeper into any of the stories we talked about today, you can find all the juicy details waiting for you in the show notes. Links, resources, articles – it's all there to help you stay ahead of the curve.
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