Twitter has recently announced that it will be removing legacy Twitter checkmarks on April 1st, and the only way to obtain a blue badge will be by subscribing to Twitter Blue. This move has raised questions about whether it will lead to increased adoption of the premium tier, but so far, the take-up of Twitter Blue has been rather lackluster.
According to Sensor Tower data, Twitter Blue has only generated $11 million in mobile subscriptions since its relaunch three months ago with a focus on generating non-advertising-based revenue. The $11 million revenue figure for Twitter Blue is significant because Twitter is counting on its success at a time when advertising, which has traditionally been its main source of income, is declining rapidly.
The decline in advertising is partly due to the overall economic situation, which has led to a decrease in marketing spend. However, advertisers have also been reluctant to reinvest in Twitter due to the platform’s frequent changes, chaotic missteps, and concerns about brand safety, especially after Elon Musk removed earlier protections.
Twitter has attempted to mend some of these relationships, including through partnerships with adtech companies like DoubleVerify and Integral Ad Science (IAS), but it remains unclear to what extent these efforts have improved revenue.
The $11 million revenue generated by Twitter Blue only accounts for mobile subscriptions and doesn’t include web-based subscriptions. Additionally, it’s unclear how many users are paying for annual versus monthly Blue subscriptions. These figures only cover the 20 markets where Blue was launched before its global availability, which began just yesterday.
According to Sensor Tower, Twitter Blue has over 385,000 mobile subscribers worldwide across both iOS and Android platforms. The United States is the largest market, with 246,000 subscribers who have spent roughly $8 million on mobile devices.
Abe Yousef, Senior Insights Analyst at Sensor Tower, pointed out that “The loss of advertising demand, fueled both by broader macro uncertainty and Twitter-specific platform issues, has made alternative revenue streams quite appealing for the social media network.”
Twitter’s user base has always been a point of interest for industry observers. However, it is not currently clear how many users Twitter has. Last year, the company claimed it had almost 238 million monetizable daily active users. The acquisition of Twitter by Elon Musk and his subsequent appointment as CEO has reportedly led to a loss of advertisers. Recent reports suggest that Twitter’s revenue declined by 40% in December 2022. This is a point of concern for the social media network, which has relied heavily on advertising for revenue.
Twitter’s last quarterly earnings statement, released in Q2 2022 when it was still a publicly traded company, showed that advertising accounted for almost all of Twitter’s revenue, which was nearly $1.2 billion, except for $100,000. Comparing this to the $11 million generated from Twitter Blue mobile subscriptions, it’s evident that the revenue generated from subscriptions is negligible in comparison.
However, it’s uncertain whether the $11 million will be a recurring revenue stream in the coming months. According to Sensor Tower’s Abe Yousef, the app intelligence firm behind the $11 million estimate, annual subscriptions will account for a minimal proportion of the total. Social media users are less inclined to spend a large sum of money all at once on subscriptions, preferring instead to opt for shorter trial periods to see if they enjoy the service.
Despite the lackluster performance of Twitter Blue so far, the company is seeking alternative revenue streams to stay afloat. The recent global launch of Twitter Blue suggests that the company is not giving up on the premium tier just yet. It remains to be seen how the service will perform in the coming months, but the company still has some work to do in driving business in its strongest markets.
Furthermore, Twitter’s decision to remove legacy Twitter checkmarks on April 1st and make the blue badge only available through Twitter Blue subscriptions is another attempt to drive more revenue from its user base. The blue badge has been a symbol of authority and authenticity on the platform since its inception. Twitter used to give out checkmarks to verified accounts to show that they are genuine and belong to public figures, brands, or organizations. However, the process of obtaining a checkmark was often confusing and lacked transparency, leading to a lot of frustration among users.
With the new policy, Twitter hopes to make the verification process more streamlined and accessible to everyone who is willing to pay for Twitter Blue. This move also aligns with Twitter’s strategy to focus on users who are willing to pay for premium features, rather than relying solely on advertising revenue.
It remains to be seen whether this move will lead to increased adoption of Twitter Blue. Some users are already expressing their displeasure with Twitter’s decision, arguing that the blue badge should be available to everyone, regardless of their ability to pay. Others are concerned that the verification process will become even more opaque and difficult to navigate, given that Twitter will now have a financial incentive to keep the blue badge exclusive.
In any case, it is clear that Twitter is undergoing a significant shift in its business model. The decline in advertising revenue and the need to find alternative sources of income have forced the company to rethink its approach. Whether Twitter Blue will be the solution to the company’s financial woes remains to be seen, but one thing is certain: Twitter is no longer the same platform it used to be, and its future is uncertain.
