Declining Usage Raises Concerns for X: Is the Market Stickiness Enough?


Declining Usage Raises Concerns for X Despite Stickiness of Market

Recent data suggests that despite declining daily active users, X’s hold on the microblogging market may be stronger than expected. According to The Wall Street Journal, X experienced a 16% drop in daily active users in September, while average time spent per user fell 2% in Q3 compared to last year. However, another firm has a slightly different view, finding that time spent by U.S. daily active users on X is actually increasing, and usage among power users remains steady.

Multiple Research Firms Confirm Decline in X Usage

Sensor Tower and Similarweb also report declining X usage, with traffic and monthly active users showing decreases.

Possible Explanations for Decreased Daily Active Users

Apptopia adds further insight, suggesting that the decline in daily active users could be attributed to a lack of new users joining following the app rebranding from Twitter to X. Additionally, the launch of Instagram Threads, which targeted X users through advertising, could have complicated the situation.

Rivals Not Necessarily Wooing X Users Away

Data from Apptopia reveals that new competitors like Threads are not significantly drawing users away from X. The overlap between the two apps is low, with only 10% of X users trying out Threads a month after its launch.

X Retains User Engagement Against Threads

Despite early competition, X manages to keep users engaged for longer periods compared to Threads. While initially spending more time on Threads, X users now spend considerably less time on it as they continue to prioritize X.

U.S. Power Users Remain Engaged with X

Appotopia’s data shows that X’s power users, who account for the top decile of usage, still heavily engage with the platform. They represent 72.4% of the total time spent on X by users in the U.S.

X Usage Continues to Grow Among U.S. Daily Active Users

Despite overall declines, X sees an increase in average daily usage among U.S. daily active users. The amount of time spent per day on X rose from 18.8 minutes in January 2022 to 20.6 minutes in September 2023.

“Stickiness” of X Poses Challenges for Rivals

The strong network effect and user loyalty towards X have already led to the closure of a rival startup called Pebble. Other X competitors may find it difficult to convince X users to switch platforms.

These findings suggest that Threads could still have a chance at competing with X due to its integration with Instagram and support from Meta, but other rivals may struggle to attract X users away from the platform.

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