The Decline of "Threads" - A Case of Losing Users

In this digital age, social media platforms constantly emerge, aiming to connect people and foster online communities. "Threads" was one such platform, launched with the vision of providing users with a private space to share their thoughts, photos, and videos with close friends.

However, despite the initial hype and promising features, "Threads" has faced a significant decline in its daily active users (DAUs), losing more than 80% of its user base. In this article, we will explore the reasons behind this decline and the lessons to be learned from the journey of "Threads."

The Rise of "Threads" - A New Concept in Social Media

source: Cristobal Herrera-Ulashkevich/EPA, via Shutterstock

Only one month has passed since Meta's Instagram-connected Twitter-killer software Threads was made available. Since then, users' time on the app has drastically decreased. Just one month after the app's launch, two different data analysis companies now claim that the number of users who log in daily has also flatlined.

Initial Success - The Hype and Its Impact

A digital intelligence firm called Similarweb provided statistics, revealing that 49 million daily active users were using Threads just two days after it was launched. That figure had fallen precipitously by August 1 to slightly over 9.6 million. Engagement has significantly decreased from Thread's early years. According to statistics from Similarweb, usage of the app peaked on July 6 at roughly 14 minutes per day across all markets, but by August 1 that time had dropped to only 2.3 minutes.

According to David Carr, a senior insights manager at the analytic firm, Threads had a somewhat better engagement time based only on data from U.S. users. The app's highest usage time for US users was 20 minutes, but it now maintains a consistent 3 minute usage time.

Identifying the Challenges - Perplexity and Burstiness

The number of daily active users on Threads has decreased 82% from when the app launched on July 5 to July 31. This information comes from the market research firm Sensor Tower, which was initially published by CNN. As more people looked for a true Twitter alternative, the app was using roughly 44 million DAU at its height, according to Sensor Tower. It was consistently receiving approximately 8 million visitors by the end of the month. According to the firm, DAU is decreasing by around 1% every day and daily interaction had decreased to only 2.9 minutes from 19 minutes earlier in July.

CEO Mark Zuckerberg said that the firm was "seeing more people coming back daily than I'd expected" to Threads during the company's Q2 earnings call last month. Before attempting to scale the group, he stated, they were "focused on retention and improving the fundamentals." 

Lack of Innovation and Monotony

When Threads first gained notoriety, it was touted as the fastest-growing software platform ever, with 100 million user signups occurring less than a week after launch. 

According to Sensor Tower's own data, the app continues to rank among the most downloaded ones for both Android and iOS. The addition of post translations and a correct chronological Following feed, two much requested additions, have been made to Threads by Meta. A search engine that can identify both topics and people, trending topics, and direct messages are just a few of the capabilities that the app still lacks that are essential to the fully Twitter experience.

Privacy Concerns - A Cause for User Churn

While the concept of private sharing appealed to many, it also raised concerns about privacy. Some users expressed reservations about trusting Facebook, the parent company of "Threads," with their intimate moments. In an era of growing data breaches and privacy scandals, users became increasingly cautious about sharing personal content on social media platforms. This lack of trust led to a decline in user retention and contributed to the platform's downfall.

A simple stark decline in total users was probably predicted because Threads were significantly more effective than Meta first seems to have anticipated. Having so many people get into an early app that was obviously only supposed to be a starting point presents a challenge when trying to convince those users to come back once the platform is more feature-rich. Amad Mosseri, the CEO of Instagram, has revealed their intention to link Threads to the decentralized Fediverse, however it's unclear whether this would spark renewed interest in the service.

The Impact of Competitors

In the fast-paced world of social media, competition is fierce. Platforms must constantly adapt and improve to stay relevant. During "Threads" rise and subsequent decline, rival apps recognized the demand for private sharing and integrated similar features into their existing platforms. As a result, users found it more convenient to use features provided by apps they were already familiar with, leading them to abandon "Threads" in favor of more established alternatives.

Users were clamoring for an alternative to Twitter as its owner Elon Musk continued his relentless march toward turning the service into a pay-to-play empty land, as was evident from the moment Thread launched. However, Threads' claimed purpose was to be Twitter with the sharp edges smoothed off and covered with pool noodles to prevent accidents. According to Mosseri, Meta aimed to minimize breaking news or potentially delicate subjects in its algorithmic feed. Can a playful substitute battle Twitter's deteriorating culture?

Though Bluesky is still in development and hasn't had a widespread launch, Threads could wind up being a specialized microblogging platform similar to Mastodon. Although frequent Zuckerberg copycats don't feel comfortable placing second or third, there isn't necessarily anything wrong with it.

The Lessons Learned and the Future of Social Media

The decline of "Threads" serves as a valuable lesson for social media companies. It emphasizes the importance of innovation, understanding user needs, and building a robust ecosystem of features that cater to changing trends. The case of "Threads" showcases that even with a unique concept, success is not guaranteed if the platform fails to meet users' evolving expectations.

Conclusion

In conclusion, "Threads" started with a promising concept, but it struggled to maintain its user base due to perplexity, burstiness, and a lack of innovation. The decline of the platform highlights the challenges faced by social media companies in a highly competitive landscape. To succeed, companies must continually prioritize user experience, adapt to market demands, and earn the trust of their users through transparent data practices.