Meta’s Threads app, which had a blockbuster first week and became the fastest-growing app of all time, is now experiencing a decline in engagement, according to data from analytics firm SimilarWeb. The report reveals that Threads’ daily active users dropped from 49 million on July 7th to 23.6 million on July 14th. In the United States, where the app had the highest engagement, usage declined from 21 minutes per day to just over six minutes during the same period.
SimilarWeb’s findings align with those of other companies, such as market intelligence firm Sensor Tower, which also reported a decline in engagement for Threads since its launch. This drop-off was somewhat expected as Threads gained traction when Twitter users were seeking alternatives, and its integration with Instagram allowed for seamless sign-ups and the migration of existing social connections. However, the app lacks several basic features, including a non-algorithmic feed that isn’t dominated by brands and influencers.
Adam Mosseri, Instagram’s top executive, acknowledged the declining engagement in a Threads post and emphasized that the company’s current focus is not on engagement metrics but on overcoming the initial fluctuations typically observed with new product launches. Mosseri highlighted the importance of introducing new features, optimizing performance, and improving content ranking.
Meta’s ability to leverage the current circumstances will depend on its speed in adding new features to drive user retention and its successful launch in the European Union. Additionally, the company is addressing spam-related issues and plans to implement rate limits and other safeguards to combat spam attacks. While the decline in engagement with Threads may appear beneficial for Twitter, SimilarWeb’s Senior Insights Manager David Carr notes that there are indications that some of Threads’ engagement has come at the expense of Twitter’s user activity, with web traffic to twitter.com and Android app usage experiencing declines.
Despite the challenges faced by Threads, Twitter remains cautious about its new competitor. The declining engagement with Threads is not the sole concern for Twitter, as Carr points out that user retention on Twitter has been decreasing since last year.
