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Some 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 an
by snowwrestler 8y ago
Some 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.