X 101 : What the Actual Fact?
Elon Musk is at it again, shaking things up with a bold rebrand that has even the most loyal Twitter users baffled.
In less than a month after introducing daily post limits, Musk has now replaced Twitter's iconic blue bird with a mysterious "X" symbol. But this isn't just a mere logo change – it's a signal of Musk's grand plan to turn Twitter into the ultimate "everything app”. The app will now appear as "X" in the Apple and Google stores.
Musk appears to be betting big on the future of X, as he recently stated in a tweet, "Soon we shall bid adieu to the Twitter brand and, gradually, all the birds."
This move aligns with Musk's long-term vision for Twitter – a transformation into an "everything app" known as X, where users can do everything from shopping to communication to entertainment.
Why X?
And most importantly, what does Twitter’s rebrand mean for your marketing?
Let’s find out.
Why’s X Retiring the Blue Bird?
The name "Twitter" served its purpose but had limitations in representing Musk's grand ambitions. Twitter seemed too confining for Musk's broader plans of creating a platform where users could do everything from chatting to shopping.
"In the months to come, we will add comprehensive communications and the ability to conduct your entire financial world," Musk revealed. The Twitter name just didn't fit into this new context.
Moreover, Twitter has been secretly making moves in the payments space. They've quietly worked on Twitter Payments and have obtained money transmitter licenses in various US states.
So, embracing the letter "X" isn't just a casual rebranding – it's a strategic move, according to Musk, to pave the way for the future of an all-encompassing platform. However, business analysts caution that the rebrand was rushed and unplanned. This could work out negatively for Twitter or what’s now called X. (It’ll take some time to get used to the new brand name.)
What to Expect from X
The platform's rebrand is just a name change – no new features yet. You can still tweet, retweet, and market your business as usual.
Musk did mention that posts on the social media site would no longer be called tweets but X's instead. However, the new version hasn’t caught on just yet— and it might not, seeing as ‘tweet’ is part of our everyday lingo now.
Twitter's CEO, Linda Yaccarino, is enthusiastic about X's potential. In a memo to employees, she described X as the future state of unlimited interactivity centered around audio, video, messaging, and payments/banking. She believes X will create a global marketplace for ideas, goods, services, and opportunities, all powered by AI.
In several tweets, Musk has explained that he’s looking to WeChat for inspiration for the new Twitter— X.
"If you're in China, you kind of live on WeChat," Musk praised. "It does everything – sort of like Twitter, plus PayPal, plus a whole bunch of things, and all rolled into one, with a great interface. It's really an excellent app, and we don't have anything like that outside of China."
Musk is determined to create a similar app outside of China with Twitter. He sees a "real opportunity" to make it happen and believes it could be an immense success.
There are also plans to add crypto functionality to Twitter in the pipeline.
Will the Twitter Rebrand to X Affect Marketing and Advertising?
The rebranding of Twitter to X has raised questions about its impact on marketing and advertising. One concern is the potential for user frustration due to the recent introduction of daily post limits. This move initially prompted some users to explore alternatives like Threads, which gained massive sign-ups after limits were introduced. The continuous tinkering by Elon Musk may cause more users to seek options that offer the simplicity of Twitter.
Moreover, removing the Twitter brand represents an immediate loss of brand equity. The positive associations consumers had with the Twitter name could encourage some to explore other platforms. Convincing users to stay loyal to X will require the platform to provide a more convenient and engaging experience that justifies the transition. Musk had previously asked users to submit logo ideas for X— but it will require more than this, according to business analysts.
However, in a post published on 28th July, Musk revealed that Twitter users had reached a new high in 2023.
For advertisers, Musk's continuous changes to the platform have raised concerns about its safety and effectiveness as a marketing channel. Some advertisers had already exited Twitter, fearing it may no longer be a suitable space to market their products and services. In fact, Musk admitted that the platform suffered a 50% decline in ad revenue.
The success of X will depend on its timely delivery of promised features. Advertisers may continue to invest resources elsewhere if the platform fails to meet expectations.
Industry experts have different opinions on the move. Insider Intelligence analyst Jasmine Enberg believes it's a gloomy day for Twitter users and advertisers, signaling the end of the old Twitter era.
Others worry that Musk's alterations may strip away the components that made Twitter great, leading to potential backlash from long-time users. In turn, this may affect your marketing if a significant portion of users decide to engage in other upcoming platforms.
Elon Musk's approach to monetizing the platform can also shed more light on what happens after the Twitter rebrand.
In a since-deleted tweet from April 2023, Musk mentioned that Twitter should exist without ads. Instead, he's considering alternative methods to make money, including potentially charging some users to access the site.
This unconventional approach aligns with his vision of transforming Twitter into a comprehensive platform that goes beyond traditional advertising. But what does it mean for advertisers?
We’ll have to wait and see.
Would Threads Be a Better Alternative?
Popular apps like Facebook and Instagram have firmly established themselves as leaders in social commerce, capturing a substantial share of shoppers' attention. 27% of shoppers prefer shopping via Facebook, while 20% opt for Instagram.
In addition, 67% of global shoppers already use social media for their purchases.
What's even more promising is that 53% of these shoppers intend to increase their spending via social media channels in the future.
Amidst Twitter's unpredictability, a rising contender like Threads is perfectly positioned to capitalize on this trend. However, recent data show that Thread’s usage has declined in recent weeks after the initial surge of users signing up.
The Upside of Twitter’s Rebrand
If Twitter— now X— transforms successfully into the Western world WeChat, businesses can experience a few upsides. Here’s how;
- If X follows in WeChat’s footsteps to include social commerce features, businesses will be able to sell directly within chat conversations.
- If X includes Mini Programs like WeChat, businesses can create interactive experiences and incentivize customers to participate through these lightweight apps.
- An integrated CRM will allow business owners to connect with customers, analyze their engagement and buying behavior, and monitor customer feedback.
But this is still far from reality. Musk has yet to share more information about his plans for X, aside from it’s going to be the new "everything app”.
Twitter and its leadership look confident in the rebrand and X’s position. In a recent message to the staff, Twitter CEO Yaccarino expressed her excitement about the name change, stating, "Our usage is soaring, and we are committed to delighting our entire community with innovative experiences in audio, video, messaging, payments, and banking."
What Now?
The impact of Twitter’s rebrand on advertising remains uncertain.
While all Twitter features currently work the same on X, Musk's vision of an all-encompassing "everything app" like WeChat could change the dynamics of social media advertising and marketing— if successful.
Despite all the changes, one thing remains constant; the need for high-quality and engaging content. Reach out to Zoey Writers to learn more.
