Our recent post about how the majority of people who use Twitter wind up abandoning the service received a lot of great coverage and feedback. We also received a healthy amount of criticism from the Twitter community who were concerned that our study sold Twitter short because it failed to take into account applications and other websites that feed into the Twitter community.

So, as an update, we went beyond just Twitter.com, adding in more than 30 websites and applications that feed into the Twitter community including: TweetDeck, TwitPic, Twitstat, Hootsuite, EasyTweets, Tumblr, and many others.

The results verified our initial findings: about 60 percent of people on Twitter end up abandoning the service after a month. The year-long retention curve looks very much the same as the one for just Twitter.com.

Clearly, this exercise illustrates the power, passion, and influence of the Twitter community. There is no question that this finding would not have spread as quickly as it did without the engaged and vocal user base that has adopted Twitter as a way of life.

Keep the feedback coming, no matter how you feel about this issue. We look forward to continuing to provide you with timely and engaging insights on this and other topics.

twitter.com/nielsenwire/

——–

David Martin, Vice President, Primary Research, Nielsen Online

Oprah embarrassed herself on it with a stuck caps lock. That guy from Punk’d competed with “the most trusted name in news” for audience. A befuddled Jon Stewart shook his fist at it in anger. Let there be no doubt: Twitter has grown exponentially in the past few months with no small thanks to celebrity exposure. People are signing up in droves, and Twitter’s unique audience is up over 100 percent in March. But despite the hockey-stick growth chart, Twitter faces an uphill battle in making sure these flocks of new users are enticed to return to the nest.

Follow Vs. Follow-through

Currently, more than 60 percent of U.S. Twitter users fail to return the following month, or in other words, Twitter’s audience retention rate, or the percentage of a given month’s users who come back the following month, is currently about 40 percent. For most of the past 12 months, pre-Oprah, Twitter has languished below 30 percent retention.

To understand why this poses a problem for Twitter, check out the chart below. By plotting the minimum retention rates for different Internet audience sizes, it is clear that a retention rate of 40 percent will limit a site’s growth to about a 10 percent reach figure. To be clear, a high retention rate doesn’t guarantee a massive audience, but it is a prerequisite. There simply aren’t enough new users to make up for defecting ones after a certain point.

Maybe we’re jumping the gun. Twitter is still something of a fledgling, and surely some other sites that eventually lived up to Twitter-like hype suffered from poor retention in the early days. Compare it to the two heavily-touted behemoths of social networking when they were just starting out. Doing so below, we found that even when Facebook and MySpace were emerging networks like Twitter is now, their retention rates were twice as high. When they went through their explosive growth phases, that retention only went up, and both sit at nearly 70 percent today.

Twitter has enjoyed a nice ride over the last few months, but it will not be able to sustain its meteoric rise without establishing a higher level of user loyalty. Frankly, if Oprah can’t accomplish that, I’m not sure who can.

Follow us: twitter.com/nielsenwire/

Earlier this month, Oprah discussed healthy living with her regular guest Dr. Mehmet Oz, who presented his “Ultimate Health Checklist,” which included three points about eating:

“Oprah’s ability to influence her audience’s behavior is legendary, and retailers should take note of these recommendations, as they may influence purchasing behavior across the U.S. Our LabelTrends service, which tracks health claims of nearly every food product that passes through U.S. cash registers, will analyze data for these foods later this year; if we see a significant spike in sales of the products highlighted on the show, we may be able to attribute that to Oprah,” said Tom Pirovano, Director of Industry Insight at Nielsen.