All successful social media businesses have one thing in common: they are constantly growing their user bases. Sadly, Twitter (TWTR) reported 320 million users in the December quarter, flat with the previous quarter and up 9% YoY, missing analysts’ expectations by 5 million users. And to make matters worse, the service lost over 2 million active users during the period. In a world that is becoming more and more connected every day, Twitter has done the unthinkable: it has shrunk.

Twitter Is Important

Before we get into what’s right and what’s wrong with Twitter, I want to make it clear that I believe that Twitter is very, very important. At its best, it amplifies voices that would otherwise be silent and it empowers everyone with a connected device to inform, enlighten and entertain.

If Twitter did not exist, someone would have to invent it. It is open, amazing and awe inspiring in every way. But my love for the bright side of Twitter is matched by my loathing and disdain for its dark side. At its worst, Twitter is an instrument of terror, a powerful tool for bullies and a breeding ground for misunderstanding – by definition, every tweet is out of context.

That said, there are far more good uses for Twitter than bad, and even though it’s in deep trouble, Twitter is worth fighting for!

Twitter’s Product Woes

In June 2015, when Chris Sacca was taking Twitter out to the woodshed, I wrote an article entitled “Twitter: Maybe TV Advertising Doesn’t Work,” which explored the idea that Twitter gets more free TV advertising than almost any other product or service and therefore there are two possibilities: (1) TV advertising does not work. (2) People don’t like the product. Then and now, I’ll go with number 2.

Twitter is many things: a microblogging tool, a social network, a broadcasting platform, etc. But it is clearly not a consumer product.

“You’re an idiot! @shellypalmer There are hundreds of millions of people on Twitter every day.”