Meta Platforms (NYSE: META) is strategizing to increase user retention on its Twitter competitor, Threads, as over half of its initial users abandoned the app after its much-hyped launch, according to CEO Mark Zuckerberg. Despite the decline in users, Zuckerberg acknowledged that user retention on the text-based platform was better than anticipated, though there is room for improvement.
During an internal meeting, Zuckerberg expressed that the current user drop-off is normal, given the scale of sign-ups, which surpassed 100 million users. He emphasized the need to enhance retention as the company introduces additional features like a desktop version and search functionality, which are expected to attract more users back to Threads, Reuters reported.
To address the issue, Meta is considering implementing “retention-driving hooks” to lure users back into the app. Chief Product Officer Chris Cox shared ideas such as integrating important Threads into the Instagram app, making it easier for users to engage with the content.
Following the meeting, a Meta spokesperson declined to comment on the specific discussions. The news follows Meta’s recent positive revenue growth forecast, signaling a potential turnaround for the company, which faced skepticism due to its significant spending on the metaverse while ad sales plummeted in the past.
During the same internal call, Zuckerberg also discussed the company’s progress in augmented and virtual reality technology, which is crucial for powering the metaverse. He expressed that Meta is on track with its work in this area and needs to invest ahead of competitors like Apple, Google, and Microsoft, which already have extensive experience building operating systems for their existing products. Zuckerberg projected that mass adoption of metaverse technologies would likely occur in the 2030s.
Additionally, Zuckerberg and Cox highlighted the recent release of an artificial intelligence model called Llama 2, which has seen significant interest in the developer community. The model, freely available for commercial use to developers with fewer than 700 million users, has already garnered over 150,000 download requests within a week of its launch.
Addressing a question about a potential “cage match” against Elon Musk, Zuckerberg remained uncertain about the prospects of such an event.
Meta’s stock surged 8 percent in response to the positive developments and the company’s ambitious plans for the future. With a renewed focus on enhancing user retention, Meta is determined to solidify its position in the competitive social media landscape and the emerging metaverse market.