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We’ll fix it with video!

Thursday, 28 April, 2016

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was…” So begins A Tale of Two Cities by Charles Dickens, and while it would be bordering on the sacrilegious to compare the fates of Facebook and Twitter to the epochal events that took place in “the year of Our Lord one thousand seven hundred and seventy-five,” the rise and fall of the great (social media) powers is the stuff of which history will be made. The fact that the tumbrels are virtual these days, makes the digital revolution less gruesome, for which we should be grateful.

Yesterday, Facebook exceeded Wall Street forecasts on almost every critical metric. The social network made $5.38 billion during the first three months of this year and grew its base to 1.65 billion monthly users. Profit was 77 cents a share, which blew away the 63 cents analysts had been expecting, and the the stock jumped nine percent in after-hours trading. During his conference call with investors, CEO Mark Zuckerberg noted: “Today, people around the world spend more than 50 minutes a day using Facebook, Instagram, and Messenger. That doesn’t even include WhatsApp yet.”

COO Sheryl Sandberg put her finger on Facebook’s success secret when she said the company is on a mission to help marketers adapt their ads for a mobile world — where messages must be shorter and often without sound. The auto-captioning feature, she added, has led people to spend 12 percent more time with an ad.

mobile video Contrast all this with Twitter, which has disappointed investors yet again with first-quarter results that showed stagnant revenue growth. Twitter, simply, doesn’t have the scale to compete with Facebook. It’s 320 million monthly users are no match for the 1.65 billion Facebook bring to the game. So, what’s the strategy? Twitter’s answer is the same that everyone else on the web has: We’ll fix it with video. That’s what Peter Kafka says in Twitter is going to have a hard time fixing its ad problem. Snippet:

“The company says it wants to convince its advertisers to upgrade their old text+photo Twitter ads with video ads, which sell at higher prices. This sounds like a good idea, but then again, it’s the same idea everyone else has — and Twitter’s already having trouble competing with everyone else.”

In Your Media Business Will Not Be Saved, Joshua Topolsky, co-founding editor of The Verge and recently head of digital at Bloomberg, pours a big bucket of water on the notion that video will fix it. “Video will not save your media business. Nor will bots, newsletters, a ‘morning briefing’ app, a ‘lean back’ iPad experience, Slack integration, a Snapchat channel, or a great partnership with Twitter.”

To paraphrase Dickens, all these things, and a thousand like them, came to pass in and close upon the dear old year two thousand and sixteen.


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