
At 215 Million Active Users, Twitter Has a Growth Problem - coloneltcb
http://allthingsd.com/20131003/at-215-million-active-users-twitter-has-a-growth-problem/?mod=atdtweet
======
briandear
If you can effectively monetize those 215 million users, then the sky's the
limit. The user base doesn't need to grow as much as the profitability needs
to grow. Comparing Twitter numbers with Facebook numbers isn't very helpful.
They're different products. Larger numbers of users doesn't necessary mean
more profit. A metric not mentioned in this article is engagement. "Active"
users isn't very helpful when discussing the potential profitability on a per
user basis. The engagement as well as the signal-to-noise makes a big
difference. For example, what's the rate of return on a Facebook ad versus a
Twitter ad? What are the CTRs? What are CPMs? What's the operating expense?
What's the profit growth rate? There are dozens of things that go into an
equation before one can say Twitter has a "growth" problem. Profits don't
follow linearly with an increase of users.

