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Jack Dorsey’s legacy as Twitter’s CEO is deeply mixed and one that doesn’t give his successor, Parag Agrawal, a smooth path forward.

Since its founding in 2006, the company has grown to 211 million active daily users, 37 million of them in the US as of September 30. It plays an important role in global politics, brand building, and daily discussions on an array of topics but also is a growing source of hate speech, conspiracy theories, and worsening mental health. Experts told Insider the company needs to address Dorsey’s missed opportunities regarding monetization, product development, and content controls.

During his leadership stints (2006-11 and 2015-21) Dorsey has been questioned for his “hands-off” leadership approach. He’s been public about his two hours of daily meditation, his 5-mile walk-commutes to work, plans to spend three to six months in Africa, and how often he delegates major decisions to people like Agrawal at both Twitter and the fintech payments company Square.

Here are the five most important missed opportunities, according to experts.

1. Banning Trump too slowly

On January 8, two days after the insurrection on the US Capital, the Twitter account for then-President Donald Trump was suspended indefinitely. But the move came after the account @realDonaldTrump sent out two tweets widely seen as increasing risk of “further incitement of violence,” the company said in a blog post.

For years, Trump was known for being controversial, insulting, and racist on Twitter, including making inflammatory comments about specific House Democrats. The account had 88.7 million followers at the time of its closure, but that number wasn’t necessarily an accurate representation of its popularity. One report in 2018 found 61% of the followers were bots, spam, inactive, or propaganda. Jane Lytvynenko, a senior research fellow at Harvard, wonders what would have happened if Dorsey had acted earlier.

“Would we have ended up with the shitstorm that was 2020 and disinformation had Jack Dorsey and Twitter decided to ban Trump in 2018, after the North Korean missile scare?” Lytvynenko asked.

A 2018 Gallup poll found 76% of Americans were aware of Trump’s Twitter usage, but only 4% of Americans overall have a Twitter account themselves, followed Trump’s account and read all or most of his tweets. The company also said it continued to gain users in January after Trump’s account was banned.

“We are a platform that is obviously much larger than any one topic or account,” Dorsey said during an earnings call that referenced Trump’s suspension from the platform.

2. His handling of misinformation

Research published in 2014 showed how the platform helped spread misinformation during the Boston Marathon bombing and the Ebola outbreak. During Dorsey’s second tenure, new research continued to show how Twitter enables the spread of false news much more quickly than true reports, particularly during the COVID-19 pandemic.

“There’s much more that Dorsey could have done to address the problem domestically and internationally,” Lytvynenko said. “The problems that he was grappling with as a CEO persist. I don’t know if he succeeded in resolving them. I would say that he sort of left the job unfinished.”

3. His handling of harassment, death threats, and hateful content

Harassment and hate speech have been consistent issues at Twitter. Dorsey has been taken to task about this several times, as recently as last year during a Senate committee hearing. The platform has been criticized for its delayed or lack of response to white supremacist, Nazi, anti-Semitic, or anti-Muslim content, especially the disproportionate abuse and death threats directed toward people of color, specifically Black women.

In 2016, the actress Leslie Jones was targeted with racist and sexist memes. Dorsey reached out to Jones and later said the abuse and harassment were not part of “civil discourse” and promised more improvements. In 2018, he acknowledged how Twitter had become known for negative kinds of content.

“We have witnessed abuse, harassment, troll armies, manipulation through bots and human-coordination, misinformation campaigns, and increasingly divisive echo chambers,” Dorsey wrote in a tweet. “We aren’t proud of how people have taken advantage of our service, or our inability to address it fast enough.”

In 2019, Dorsey said the company had not done enough to combat abuse online. Later that year, he was grilled about the issue by the head of TED, Chris Anderson, and Whitney Pennington Rodgers, TED’s current affairs curator. Dorsey said Twitter was trying to be more proactive through machine learning and the use of algorithms to identify abusive tweets, “so we can take the burden off the victim completely.”

4. Failure to better monetize advertising and marketing

Twitter has become an essential part of mainstream media and the political economy worldwide. Politicians who build large followings on the platform can see real benefits, like raising more money and increasing their chances of being elected. Brands can go viral.

But a lot of Twitter’s viral engagement has been organic, rather than through paid promotion or marketing, said Pinar Yildirim, associate professor of marketing at the University of Pennsylvania. “He missed a lot of opportunities to increase the company’s advertising share compared to other social-media platforms.”

The company also banned political advertising in 2019.

Yildirim said Dorsey’s ideals were focused on making Twitter a place for open discussion instead of trying to target them with lots of advertising and monetization like Facebook. “They remained very limited in these functionalities, which eventually made Wall Street not so happy.”

5. Slow product updates

One of the biggest changes during Dorsey’s time as Twitter’s CEO was the shift from 140 characters to 280 in 2017. But Yildirim said Dorsey’s vision kept the platform “in many ways, frustratingly, too simple.”

Yildirim said in her research and interviews with Twitter employees, the company has been working on ideas for monetization and to enhance the customer user experience, but they haven’t materialized. “They have tried many different things, many different beta products,” she said. “And somehow it hasn’t really been embedded into products. They have a long way to go.”

Feature Image Credit: Joe Raedle/Getty Images

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Sourced from INSIDER

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Jack Dorsey will no longer steer the company he founded, but is this due to stagnating profits or a more fundamental change of direction?

So Jack Dorsey has stepped down as the CEO of Twitter. This means that the company has had four CEOs in its 15 years of existence, with Dorsey occupying the role twice, but in all that time it’s had only one business model, which may largely explain his departure.

There are interesting parallels between Dorsey’s relationship with the company he co-founded and Steve Jobs’s with Apple, for both were ousted at one stage by their board colleagues and were then brought back to rescue said colleagues from their incompetence.

And the parallels don’t stop there. During their sojourns in the wilderness, both men founded successful new companies, in Dorsey’s case the payments firm Square, in Jobs’s case the computer firm NeXT Inc, after which he went on to transform the Lucasfilm graphics company into Pixar. For both men, these were profitable periods of exile: Square is now valued at $100bn; Jobs sold Pixar to Disney for $7.4bn and got a seat on the Disney board. Which only goes to show that sometimes being fired is the best thing that can happen to a visionary.

The idea that became Twitter came from Dorsey’s brainwave in 2006 that if one could broadcast one’s SMS messages then that would be quite a thing. It was an instant hit, not least because most people already knew about text messaging and so the new service hit the ground running. In short order it morphed into a global wire service for ordinary people and, in the 2016 US presidential election, into a megaphone for a particularly adept and unscrupulous user of the medium.

So why is the guy who created this astonishing service stepping down? The proximate reason is that he’s being hassled by a couple of wealthy “activist” investors who can’t understand a) how Dorsey could be both CEO of Twitter and of Square (good question, IMHO); and b) why a service that has become such a central part of the networked public sphere isn’t attracting more users or making more money. The number of monthly active users (MAU) on Twitter has been pretty stagnant for a while, and although its annual revenues ($3.72bn in 2020) might seem substantial to those who live in the real world, in the reality distortion field of Silicon Valley they are viewed as small change. As one way of placating these impatient activists, Dorsey gave each of them a seat on the company’s board in return for substantial injections of capital.

But it’s clear that what they are pushing for is a change in Twitter’s business model. Like the other social network companies, Twitter makes its money from advertising, but because it doesn’t have any direct user-to-advertiser link, most of the advertising is brand, rather than product, related. Which means that much of the advertising that crops up in one’s Twitter feed is basically virtue-signalling by corporate brands.

It’s not clear how this can be changed without radically changing the nature of Twitter, thereby losing its uniqueness. The veteran tech analyst Ben Thompson had an interesting way of putting this in his newsletter the other day by comparing Twitter with Instagram. Both follow a broadcast model but their respective default media are different: for Twitter it’s text, for Instagram it’s photographs.

The implications of this are vast, argues Thompson. “Sure, you may follow your friends on both, but on Twitter you will also follow news-breakers, analysts, insightful anons, joke tellers and shit posters. The goal is to mainline information and Twitter’s speed and information density are unparalleled by anything in the world. On Instagram, though, you might follow brands and influencers and your chief interaction with your friends are stories about their Turkey Day exploits. It’s about aspiration, not information, and the former makes a lot more sense for effective advertising.”

Putting it another way, the mental states of users are different on the two platforms. Instagram is a way of combating boredom, endlessly scrolling in the hope of finding something interesting. A user in that frame of mind is more likely to be tempted by the prospect of an impulsive purchase.

Twitter users, however, are not bored. Instead, they’re combative, annoyed, outraged or looking for a fight or a joke. Often, my Twitter feed brings to mind a story I once heard from a Scottish comedian about Sauchiehall Street on Friday nights in the old days: he described a scene in which one drunk has grabbed another by the lapels, banging his head against the wall and shouting: “For the 20th time, Jimmy, there are 31 islands in the Greek archipelago.”

As Dorsey headed for the exit the other day, he dropped a delightfully wicked thought. “There’s a lot of talk about the importance of a company being ‘founder-led’. Ultimately, I believe that’s severely limiting and a single point of failure.” The funny thing is that while that may or may not apply to Twitter, that idea of “a single point of failure” very definitely does apply to another social network. And Mark Zuckerberg isn’t going anywhere, not even if the wretches on his board of directors thought it was time for him to spend more time with his money.

Feature Image Credit: Twitter CEO, Jack Dorsey, will pass the Twitter reins to Parag Agrawal. Photograph: Xinhua/Alamy

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Sourced from The Guardian

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witter’s co-founder and chief executive Jack Dorsey said he plans to “double down” on adtech investment, saying the company has learned lessons from past mistakes that could see it pivot towards forging partnerships with third parties rather than acquiring or building its own offering.

“Advertising is our business and technology is how we manifest that,” said Dorsey at the Cannes Lions festival today (21 June.) “We’re definitely not out of the adtech investment phase. We’re doubling down. Especially with the hire of Bruce [Falck]. He’s taken right to it.”

After an exhaustive search, Bruce Falck joined the company earlier this year as general manager of revenue product, reporting directly to Dorsey (previously he was the chief executive of adtech outfit Turn). That hire was very much seen as a push by Twitter to bring a advertisers a more targeted and measurable offering as well as stand up against the Google and Facebook, which control in excess of 70% of the market.

Falck joined having spent much of his career working for adtech businesses. Prior to his tenure at Turn, he served as chief operating officer at video ad company BrightRoll and developed display advertising products at Google.

According to reports, not confirmed by Twitter, it has since been reconsidering several of its advertising products, including the direct response business, parts of the Promoted Tweets product, and TellApart, the digital ad platform it acquired in 2015.

Speaking on what has went wrong in the past on the advertising side, Dorsey said that it simply “didn’t always prioritize [it] in the right way.”

We acquired companies or platforms and didn’t give them the options that they needed or tie it together with everything else that we’re doing,” he said. “And that doesn’t set up the acquisition for success. So, we’re [now] being really deliberate in what we look at and why.”

He went on to say that moving forward it would look to “buy versus build” its adtech offering, although he did add that it may also look to pursue this strategy by partnering with third-party tie-ups.

“We’ve tended to build a lot in the company. When we started it was before there was a public cloud that we could use and that set the DNA of the company. But we need to change that mindset. We don’t need to build everything, but we also don’t need to acquire everything. We can go through third parties and just really focus on what our strengths are,” he said.

Rebuilding from the inside out

At the beginning of the year, Twitter set about on a rebuild of the company to “get back to basics” and redefine itself around one core mission – being “the best and fastest place to see what’s happening in the world and what people are talking about.”

In a three-pronged attack, it set about re-establishing its execution of the product (“we needed a lot more discipline”), better marketing to “tell the story of what Twitter is” and focusing “our energy on our strengths” on the users already had, rather than trying to attract more.

During this reset phase, it was forced to layoff nearly a tenth of its global workforce – around 350 people – which Dorsey said was one of his darkest periods at the company.

“It was heartbreaking,” he explained. “I remember the night before, I hand wrote thank you cards to everyone we were letting go. I was up until 2am although, unfortunately, there was mishap with mailing and we couldn’t get them to everyone on time. But it was really the toughest thing. It’s still so painful to think about and I wasn’t expecting to do anything like that in my life.”

However, he said it’s now seeing results from the changes. Twitter surprised analysts with a strong performance for the first quarter for the year, seeing a spike in both user growth and earning.

“It now gives us breathing room to take bigger steps and do some non-linear things,” he hinted. “We want to bring a whole lot more creativity back into the organization and more playfulness with what we’re focused on. I’m really excited about this year.”

For more news from Cannes Lions follow the dedicated news stream on The Drum website

Feature Image: Jack Dorsey, Twitter co-founder and chief executive, was speaking at Cannes Lions 2017

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Jen Faull is deputy news editor at The Drum with a remit to cover the latest developments in the retail and FMCG sectors. Based in London, she has interviewed major business figures including top marketers from Mondelez, Unilever, Tesco, and Lidl.

Sourced from THE DRUM