BrandSavant

Gaining Insight From Social Media Data

Why Twitter Is Pushing Trending Topics

by Tom Webster on March 8, 2011

If you’ve downloaded the latest Twitter app for the iPhone, you can’t help but notice the new overlay at the top of the screen that highlights trending topics (and the occasional promoted topic.) Blogger John Gruber has coined this somewhat annoying screen-hog the “dickbar,” after Twitter CEO Dick Costolo (and certainly not in any pejorative sense…) Dave Winer notes that this is a stab at bringing “instream advertising to the eyeballs of Twitter users,” and, indeed, there is probably a great deal of truth to this observation.

There is, of course, another possibility (and not a contradictory one, I might add.). Today my company, Edison Research, announced the latest Twitter statistics from our ongoing series of social media research studies with our partners at Arbitron. Our 2011 data indicates that although the awareness of Twitter is nearly universal (more people have heard of Twitter than could possibly access it), the growth in usage appears to have slowed somewhat, rising from 7% of Americans 12+ one year ago to 8% today. Yes, growth is growth – but everything being equal from last year’s study (sample, methodology, etc.) one percentage point is lower than some might have expected, given Twitter’s ubiquitous awareness and mass media presence.

2011 Edison Research Twitter Usage

Don’t get me wrong – 8% of Americans 12+ is approximately 20 million persons, and there is certainly a there there. In no way am I ready to say that Twitter usage has stalled; yet, one cannot escape the fact that usage growth appears to be slowing, even before Twitter’s long-awaited revenue model has found a foothold.

My theory is this: most of the social network usage that we and other sources have measured is driven primarily by Facebook usage. Facebook’s symmetrical network design encourages people to share elements of their lives under the premise that those updates are only visible to people they actually know. Sharing elements of our lives with friends is a universal drive. Twitter is a different dog, clearly – based upon the data I have seen (and we have collected) about bloggers and other content creators, I suspect there is a hard cap on the percentage of Americans who have a predilection to create content for people they don’t know.

I don’t know that percentage, but my guess is that it’s a drop higher than 8% but not significantly so. This means that future growth in Twitter usage has to come from consumers, not creators. And Twitter, for the uninitiated, is not exactly the easiest broadcast network to get in to. Twitter will continue to be an important outlet, but tools to make the service easier to consume (better topic segmentation, curation and consumption tools for the masses) will be necessary to get it over the hump.

The “dickbar” might be more than just an opening salvo in Twitter’s monetization scheme; it might also be a key to Twitter’s broadcast future, providing casual browsers with sensible entry points into the service that don’t require interaction. What do you think? The comments are yours!

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  • @eric_wheeler

    Interesting. You definitely make a good observation. The efforts to monetize Twitter is a complicated puzzle to piece together–especially without traditional ads. I’m just glad I got rid of Twitter for iPhone before they put the ‘dickbar’ on there.

  • Anonymous

    I don’t want to ‘sell’ to only those that I ‘know.’ Therefore, Twitter is a better model than Facebook.

  • http://www.kndino.com Keri Andino

    I believe one of the main reasons that we aren’t seeing exponential growth on Twitter, as a truly viable SM platform, is because it isn’t being highly used by Gen Y- Teens are all about Facebook and Tumbler and seldom think of Twitter as an engagement tool.

  • http://socialbutterflyguy.com/ DJ Waldow

    I’m not sure what exactly (yet), but you are onto something with this statement:

    “I suspect there is a hard cap on the percentage of Americans who have a predilection to create content for people they don’t know.”

    Must. Have. More. Coffee.

  • http://www.brandboost.co.uk Danny Blair

    Twitter has never been a kids’ thing. I’d be interested to see how the figures stack up for the over twenty fives though.

  • http://twitter.com/brianbarela Brian Barela

    i suspected a similar thing. when i talk w friends who are new to twitter many of them really do not know what to do there. they broadcast updates, but rarely get @replies because a lot of them think it’s facebook and post lots of family/personal stuff that gets lots of engagement on fb but much less on twitter.

    sadly this interruption strategy is pushing me away from the iphone app and back to my deskop client more.

  • MacR

    Twitter has evolved to be like a free shuttle to take people to shopping destinations for discounts and deals, to news/political links for real-time and reference information, and to socially relevant content. With all due respect to the people who work at Twitter and likely do lots of hard work there, it seems Twitter has become a pro bono middleman to: 1) help channel its users toward fulfillment of some knowledge and/or engagement goal and 2) provide a lucrative platform for businesses to engage with customers, make money, and foster goodwill for themselves. Realizing that Twitter has hired a “President of Revenue” and is beefing up a sales force (???), until the company comes up with a viable revenue model (which, to be fair, they’re likely working on), that organizational title simply comes off as sounding grandiose and like they’ve hired and upgraded a “Mayor of Something” on FourSquare. I’m certainly not trying to bash Twitter, as it has turned out to be a vitally important service for those who use it. It’s just that approximately 20 million people (according to the data presented in this article) are currently drinking free milk because they don’t have to buy the cow. Ironically, I just read a WSJ article this morning about how advertisers are paying big bucks through Ad.ly for celebrity product endorsements on Twitter. Is Twitter even getting paid for providing the advertising vehicle? Twitter has a tough task when it comes to monetization since people and many businesses are already used to a free service and also because consumers simply don’t like the annoyance and interference of having products and ads pushed at them via an internet platform.

  • http://www.RobynsOnlineWorld.com Robyn’s Online World

    While the majority on Twitter maybe content creators, we are all also consumers. They are not mutually exclusive.

  • http://twitter.com/lisat2 Lisa Thorell

    An entertaining idea you have here and the stats are truly noteworthy. But, in the end, I’d agree with Dave Winer that this is part and parcel of their make-revenue-now ad strategy (see for instance, http://www.businessinsider.com/twitter-warns-advertisers-that-twitter-ads-will-tick-people-off-2011-2). Watching the ad.lys and MyLikes broker the $10,000 celebrity tweet – and facilitating it – I wouldn’t be surprised to see them (if they aren’t already?) take a portion of that through Promoted Tweets. Interestingly, celebrities are both one of their mass market draws (aka Charlie Sheen) and sponsor draws. From that POV, both Winer and you are right!

  • http://www.edisonresearch.com Tom Webster

    Well, as I mentioned, I don’t think they are mutually exclusive ideas :)

  • http://twitter.com/lisat2 Lisa Thorell

    You absolutely did- right at the beginning. I’m a little slow – i didn’t see how they converged completely until i thought through Twitter’s celebrity assets. Thanks for helping me think!

  • http://twitter.com/tweetysez TweetySez

    I don’t necessarily think that FREE is bad, but I do believe that $$$ & “profits” can easily be a distraction….too much of a focus on that can lead to “rigging” the system-create lots of “fake” people and “fake” numbers which can lead to the real users getting disillusioned,frustrated,and going somewhere else in this great big web. Build it and they will come and STAY;) Keep up the great work of kicking things around!;)

  • http://twitter.com/tweetysez TweetySez

    Different strokes for different folks. I think if you can tap into the baby boomer market you’ve got it made..I believe there’s a “decline” because the economy is in decline and there are a lot of stressed out and broke ppl out there. I was wondering what the worldwide figures are “trending”? IMHO that’s the real power of twitter;)

  • http://twitter.com/tweetysez TweetySez

    or maybe they don’t like to be [boxed] into 140 characters and don’t know there are a multitude of options. This may sound crazy but maybe there could be minor leagues so you don’t get thrown out into shark infested waters?or as a comparison to IRC maybe there should be different “channels” so if interested in Bieber u could have a channel with sponsors of that channel?or a “group” kind of channel concept where people can easily find like minded tweeters?;)

  • http://twitter.com/webby2001 Tom Webster

    No, but there are a lot more non-creating consumers out there than creating-consumers :)

  • http://twitter.com/webby2001 Tom Webster

    I am also a little put off by the overlay (though I still use the app). The real question is what the overlay does – or doesn’t do – for the 84% of Americans who are aware of Twitter, but don’t use it. Maybe Twitter knows a little something about those folks?

  • http://twitter.com/webby2001 Tom Webster

    We’ll release that soon.

  • Anonymous

    Tom,

    Won’t Twitter need to evolve based on both content creation and consumption? Any new user has to find their way past the “open firehose” to categorized content they relate too or I imagine they lose interest or are simple overwhelmed by the noise. As with other media, it seems that channels, customized filters, lists etc. are the only way for a consumer to find what they like – fast and if the content isn’t magnetic and compelling, they won’t follow it because they’ll forget about it and move on.

    I agree with you that consumers (in both B2C and B2B) will drive the next stage of Twitter’s growth but the way each individual sets their filters, channels, level of two-way accessibility etc. will be the most important “content” of all.

  • http://twitter.com/theslynch stephanie lynch

    I agree completely with your “hard cap”–in fact, I’m glad of it–and prefer that Twitter isn’t necessarily the communication platform of choice. It gives marketers and brand ambassadors the chance to connect with a very specific group of people–namely those that have something to share–and aren’t afraid to share it. However, I do think that Twitter needs to figure out those tools you referred to–robust chatter management tools. As much as Twitter may be the place where consumers create–Facebook is where the consumer really lives–unfortunately because that’s where a consumer’s friends and family are–not just their colleagues. I hope beyond hope that Twitter can find a way to streamline messaging and continue to “trend” for, shall we say, the communicator-philes. The beauty of Twitter is that it flattens gatekeepers. And, that is a beautiful thing–for everyone.

  • http://twitter.com/smotoolkit Sydney Shore

    Thanks for sharing this post. It’s very concise yet very informative and helpful. From the graph to the analysis, everything is noteworthy.

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