Welcome dear reader! What originally started as a small side experiment has evolved into one of the most influential online platforms today. This guide will trace how Twitter has grown over sixteen years into a ubiquitous communications medium used by hundreds of millions worldwide.
We’ll explore Twitter’s origins, explosive viral growth phases, evolving products and features, leadership changes, persistent controversies and sources of profitability. You’ll gain insider perspective into the company‘s highs and lows from my standpoint as veteran industry analyst. I invite you to join me on a fascinating journey through Twitter‘s history!
Humble Beginnings
Before Twitter became synonymous with breaking news and trending topics, it began in 2005 as an SMS-based side project cooked up by the struggling podcasting startup Odeo. Odeo‘s Noah Glass originally conceived what he termed ‘Twttr‘ as a tool for groups of people to communicate statuses via text message. He recruited Odeo co-founder Ev Williams and Jack Dorsey to help bring Twttr to life.
Tensions arose early on between Glass and Williams over creative direction and ownership of the idea. This resulted in Glass‘ forced removal from the company he arguably founded. Dorsey took over as Twitter CEO as it spun off from Odeo as an independent company in 2007.
Gaining Viral Traction at SXSW 2007
The newly christened “Twitter” began attracting buzz at 2007’s South by Southwest Interactive Festival in Austin, Texas. The real-time, location-based nature of Twitter lent itself perfectly to the impromptu conversations and scheduling coordination needs of conference attendees.
Expert observer Simon Dumenco noted that “the influencer types were talking about a hot new tool for keeping tabs on conference chatter.” Twitter won SXSW’s award for best startup. Media coverage combined with word-of-mouth hype accelerated Twitter‘s user growth dramatically following SXSW.
| Year | Registered Users | Tweets Sent Daily |
|---|---|---|
| 2007 | 400,000 | 20,000 |
| 2008 | 6 million | 300,000 |
| 2009 | 18 million | 2.5 million |
The table above charts Twitter‘s early hockey stick growth in registrations and tweet volume following SXSW 2007. As hype increased, infrastructure struggles led to extended blackout periods dubbed "fail whales."
Nonetheless, exciting potential as a broadcast medium for news and entertainment was apparent. Let‘s examine how Twitter evolved under various leaders.
Leadership Changes, New Products and Funding Crises
With users exploding, Ev Williams stepped down as CEO in 2008, replaced by Jack Dorsey. Dorsey focused on improving uptime and making the main Twitter app more intuitive and user-friendly. After just two years, Dorsey was controversially ousted reportedly over concerns he was splitting focus with new startup Square.
Taking over in 2010 was COO Dick Costolo, who oversaw key product innovation, international growth and two high-profile acquisitions. Costolo helped conceive and implement Twitter’s breakthrough advertising model called Promoted Tweets in 2010, opening the doors to desperately needed revenue streams.
Costolo also led the acquisitions of video sharing upstart Vine and social media management platform TweetDeck. Despite achieving profitability by 2014, Costolo faced criticism over poor employee diversity and lack of innovation. He resigned in 2015, clearing the way for Jack Dorsey’s return as CEO.
Dorsey 2.0: Attempts at Revitalization
Dorsey’s second tenure saw initiatives to streamline Twitter’s core functions while playing catch-up in areas like live video and artificial intelligence capabilities relative to rivals like Facebook. 2016 marked the launch of algorithmic feeds to display more relevant content first. Video live streaming witnesses rapid adoption over 2017 and 2018.
Under pressure from activist investors, Dorsey gradually boosted R&D spending to accelerate product development. Acquiring London AI startup Magic Pony Technology in 2016 helped Twitter strengthen abilities for features like image cropping and processing. Engineers revamped the Twitter app itself with an emphasis on usability.
| Year | Annual Revenue | Profit/Loss | Monthly Active Users |
|---|---|---|---|
| 2015 | $2.21 billion | $(521) million | 307 million |
| 2016 | $2.53 billion | $(457) million | 317 million |
| 2017 | $2.44 billion | $(108) million | 330 million |
| 2018 | $3.04 billion | $1.206 billion | 321 million |
Financial data during Dorsey’s second stint as CEO shows spikes in losses preceding a return to profitability by late 2017. However monthly active users stalled as scandals around bullying and election interference eroded public trust. Dissatisfied investors like Elliott Management pushed for Dorsey‘s removal, though he narrowly retained control with help from ally Silver Lake Partners. Let‘s examine the controversies plaguing Twitter.
Persistent Controversies
Despite its popularity, Twitter has continually reckon with consequences of its influence. Governments authoritarian regimes blocked Twitter over its role in protest movements such the 2009 Moldovan revolution and Arab Spring uprisings starting 2010.
India threatened bans when tweets stoked religious violence. Nazi symbology proliferated until Twitter banned hate speech in late 2020. For years, women, people of color and LGBTQ groups contended with vicious harassment from other users.
High profile hacking incidents, like the 2020 takeover of celebrity accounts to spread cryptocurrency scams, exposed Twitter’s vulnerabilities. Most alarming was Donald Trump’s unprecedented use of tweets to spread misinformation, attack opponents and ultimately incite the January 2021 US Capitol insurrection.
In the aftermath, Twitter permanently suspended Trump’s account, but scrutiny over Twitter‘s role in enabling real-world harm continues from regulators worldwide. Efforts to invest in more ethical AI for content moderation have seen moderate success. Shareholders and users demand Twitter address its societal influence responsibly while still upholding free speech.
The Lasting Importance of Twitter
For all its faults, Twitter’s impact as a real-time communications and news network remains undeniable. I‘ve watched its tools enable once unthinkable collaboration and collective action. Hashtag phenomena still frequently showcase internet culture at its best.
And say what you want about Trump’s toxic tweets, but Twitter crucially gave ordinary citizens unfiltered contact with political leaders. The recency and rawness of thinking on display here cuts both ways. I believe open platforms supporting voices both powerful and marginalized remain essential.
Of course shareholders care most about returns – by that measure Twitter still underperforms competitors in average revenue per user. Critics also charge Twitter has lost ground in innovation compared to TikTok or Clubhouse.
Nonetheless, Twitter sits among the key media forces changing society today much like Google, Facebook or WhatsApp. Not bad for an improvised side experiment! If ethical challenges get resolved under Dorsey and beyond, Twitter may still produce its most impactful chapters. Thanks for joining me on this guided tour of one of the most fascinating startup success stories modern times! Let me know your take on Twitter’s history or predictions going forward.
