Clubhouse has earmarked Australia for growth more than a year after the social audio app catapulted into the global spotlight.
Last year, the app rapidly gained popularity as social media use spiked during strict coronavirus restrictions. Celebrities such as Drake and Oprah Winfrey even joined the platform which at the time was invite-only with each user given two invites to pass on to friends.
Earlier this year, the app hit 10 million weekly active users. The company also says that there has been more than 10 million downloads on Androids since the app became available on Android devices worldwide in late May. Clubhouse adds that it is seeing more than 700,000 rooms created each day, up from 300,000 in May, and people are spending more than 70 minutes on average on the app every day.
However, there have been doubts whether Clubhouse will be able to meet early expectations for growth, with the number of monthly app installs declining by millions around the world.
Bethanie Blanchard, head of strategy at Carat Melbourne, says Clubhouse’s early success was based on two key factors; the novelty of an audio social platform and the fact that it tapped into behavioural drivers to attract user uptake, such as scarcity bias, which could end up hindering its growth.
“This [invite-only] element was discarded in July this year to drive user volume, but the scarcity is also inherent in the content of the app itself,” Blanchard tells AdNews.
“Conversations happen in real time and are not saved for playback. The ephemerality lends it a ‘you had to be there’ feeling that led to the buzz, and it was helped by tech giants such as Mark Zuckerberg using the platform to make launch announcements or Elon Musk interviewing the CEO of Robinhood following the Gamestop saga.
“But it has been a victim of its own success. The exclusivity of the invite ended up hampering scale for many users, and the fact that it has only recently become available for Android users also limited volume growth.”
Bethanie Blanchard
As the Clubhouse team continues with its growth plans for the app, they have plans to build a local team for Australia and New Zealand, where daily active users are up 44% over the quarter since June.
Clubhouse cofounders Rohan Seth and Paul Davison recently held the first Australia Townhall on the app, a session which introduces new users to Clubhouse and highlights local creators.
“Clubhouse has a team of 58 who are focused on working with creators in markets around the world but they’re not singularly focused on Australia and New Zealand,” a Clubhouse spokesperson tells AdNews.
“Graham Jenson is a Clubhouse engineer based in New Zealand and he is currently our only team member on the ground in the region, however we will be building the local team in the future.”
Another threat to Clubhouse’s growth is increasing competition from competitors.
Recently, Facebook, Reddit, Twitter, and Spotify launched their own audio-only tools which replicate the Clubhouse experience, where users break into rooms and have conversations. Experts say this could eat into Clubhouse's audience.
“My view has always been that it is audio social rather than Clubhouse itself that will endure,” Blanchard says.
“According to reports, in April this year, global downloads of the platform had dipped to about 900,000 compared to 9.6 million in February.
“The main drawback on Clubhouse was that you needed to build a new audience on the platform, or migrate an existing audience over to the app. Given Twitter has now made Spaces available in Australia, Facebook is launching its own version, and even Spotify – where people already go to consume audio – is launching their own live audio discussion functionality ‘Greenroom’, I think usage will continue to drop off significantly.”
The app is currently monetised through payments in the US, where users can send content creators money, and the feature is set to be rolled out around the world in the coming weeks and months.
A clubhouse spokesperson says the platform is also looking at adding a marketplace to connect brands and creators, as well as introducing ticketed events and subscriptions.
Blanchard says advertising could easily be integrated into the app but notes brand safety would be a concern given the challenges of content moderation for audio.
“There are highly engaged audiences on Clubhouse, especially in the areas of beauty, entrepreneurship and tech,” she says.
“If a brand was to advertise on the platform, they should approach it as they would a sponsorship of a conference event panel or podcast. Partner with talent, curate an event, do live reads within the content and use it as a way to drive deeper engagement.
“As with any audio platform, it also opens up interesting questions around what your brand might sound like, beyond just distinctive audio assets or sonic landscapes.”
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