Posts Tagged ‘statistics’

@everybody: stop drinking the Kool-aid

Friday, June 5th, 2009

Fail Whale Pale Ale label

Twitter has become a valuable asset to me and a part of my everyday reading and writing. So, I’m a fan. But.

By now you’ve probably read the fawning Time magazine article by Steven Johnson, “How Twitter Will Change the Way We Live“. Now I don’t want to be contrarian just for the hell of it, but enough is enough.

OK, sure the media outlets love the Hollywood story that is Twitter. Of course Twitter’s high profile investors have a vested interest in evangelizing the phenomenon. And who could expect less from the Twitter-addict community? Even I have tasted the holy Kool-aid!

But when Twittermania flavors serious journalism, we need to be more critical.

For starters the article asserts that Facebook’s audience “is still several times as large as Twitter’s”. In fact Facebook’s audience and user base are most likely 20 times larger than Twitter’s, the churn of new users on Facebook is considerably lower than Twitter’s and Facebook is still growing much faster in absolute numbers.  “Several times as large” is just misleading. This is neither pedantic nor picayune.

And why is it that Johnson makes no mention of the Nielsen study about user retention?

Currently, more than 60 percent of U.S. Twitter users fail to return the following month, or in other words, Twitter’s audience retention rate, or the percentage of a given month’s users who come back the following month, is currently about 40 percent… Compare it to the two heavily-touted behemoths of social networking when they were just starting out. Doing so below, we found that even when Facebook and MySpace were emerging networks like Twitter is now, their retention rates were twice as high. When they went through their explosive growth phases, that retention only went up, and both sit at nearly 70 percent today.

The Nielsen study is not perfect and raises more questions than it answers, but it surely merits examination in any discussion of the Twitter phenomenon.

Another recent study (published too late to be included in the Time article), “New Twitter Research: Men Follow Men and Nobody Tweets” by Bill Heil and Mikolaj Piskorski, adds fuel to the fire.

Twitter’s usage patterns are also very different from a typical on-line social network. A typical Twitter user contributes very rarely. Among Twitter users, the median number of lifetime tweets per user is one. This translates into over half of Twitter users tweeting less than once every 74 days.

twitter research 2.jpg

At the same time there is a small contingent of users who are very active. Specifically, the top 10% of prolific Twitter users accounted for over 90% of tweets. On a typical online social network, the top 10% of users account for 30% of all production… This implies that Twitter’s resembles more of a one-way, one-to-many publishing service more than a two-way, peer-to-peer communication network.

Again, a lot more research needs to be done, but as one of those Twitter members in the active 10%, I do get the sensation that we are projecting the value that we get from Twitter onto the greater Twitterverse, without a shred of evidence to support this thesis.

It is paradoxical that the openness that Twitter, the company, says it embraces, from its API’s to its user-generated feature set, is so lacking when it comes to sharing their proprietary statistics, the politics of their suggested follow list or their plans with respect to providing access to their firehose and archives. Twitter is a privately held company and does not owe this to anyone, but then it should stop sending its executives around saying that they want Twitter to be like a public utility. They can’t have it both ways, but it won’t be for lack of trying.

The article correctly points out that Twitter’s deceivingly simple forumla — “the follower structure, link-sharing, real-time searching” — will become part of the fabric of our communication web regardless of how the Twitter the company fares.

They didn’t really invent any of the individual elements that make the service compelling, but they did stumble upon the recipe for mixing them together to create a tasty soufflé. Note that this word means “to blow up” or “puff up” and, of course, once taken out of the oven a soufflé tends to fall rather quickly.

Is this an apt analogy? Discuss.

Always on!

Monday, May 11th, 2009

Many of you will remember the early days of the web when The Next Big Thing was “always on” — fast, cheap bandwidth that would liberate us from the curse of dialup and would naturally enable new business models to emerge. We normally thought about this in terms of Internet connectivity, separate from mobile telephony. Since those days we have seen the blurring of the lines between voice and data due to the emergence of VoIP, 3G mobile, smartphones and (still too expensive) flat rate data pricing.

I just came across this article in the NYT, A Pocket-Size Leveler in an Outsize Land, by Anand Giridharadas. And it really hammered home the reality of where we are heading as a planet as far as digital connectivity is concerned.

But the technology has seeped down the social strata, into slums and small towns and villages, becoming that rare Indian possession to traverse the walls of caste and region and class; a majority of subscribers are now outside the major cities and wealthiest states. And while the average bill, of less than $5 per month, represents 7 percent of the average Indian’s income, enough Indians apparently consider the sacrifice worth it: if present trends continue, in five years every Indian will have a cellphone… There are 65 times more cellphone connections than broadband Internet links, and the gap is widening.

A huge percentage of the world’s population is coming online not through PC-based Internet, but through their cell phones. There are 3 billion active mobile device users in the world, 92% of them outside of the US market. (Stats are from Tomi Ahonen.)

What does the social web look like, how does it feel, when your first and only window into that world is a handheld mobile device? Like the Indian parable of the blind men and the elephant, your perception is determined by where you touch the animal.

A mobile device is by its very nature always on. Since there is little doubt that even the cheapest cell phones will be able to send and receive pictures and videos, listen to and share music and navigate the so-called mobile web in the not too distant future (as many already do), it is fascinating to think about what kind of new social networking businesses will be built to scale to, um, billions of members.