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Twitter is the type of company that only works due to network effect. Like ebay and facebook. So I'd say the age of the company is immaterial, it's how much of
by jiveturkey 8y ago
Twitter is the type of company that only works due to network effect. Like ebay and facebook. So I'd say the age of the company is immaterial, it's how much of the market they've acquired so far. MAU growth is a fair metric.
- snowwrestler 8y agoSome networks are more valuable than others. Raw MAU tells you nothing about the LTV of those AUs. What's better for eBay: a shitload of people who never buy anything? Or a smaller network of engaged, repeat sellers and buyers? And some networks have negative value. 4chan, despite attracting large traffic numbers and being a well-known cultural force on the Internet, has always struggled to attract advertisers. To maximize financial value of its user network, a parent company must exclude users and content that subtract value. Examples would be lower-LTV users who drive away higher-LTV users via harassment. Or users who post content so objectionable that brands don't want to advertise against it. MAU growth alone tells you nothing about those things.