Since the rebranding was announced, many marketing experts have criticized the decision. Some of them are adamant that this change is a big mistake. Here are some of their opinions:
Becci Salmon, design director at IPG-owned advertising agency FCB London: According to The Drum, Salmon says, “There’s a lot to be said for brand equity – Twitter’s reputation and recognition weren’t built overnight,” and “Twitter, tweets, tweeting – it’s all part of the vocabulary, a familiarity that’s been built over 17 years. [Musk is] destroying a brand that has been central to social media… my first reaction was that this is something only a billionaire on an ego trip would do.”
Mike Proulx, research director and vice president at Forrester: “While Musk’s vision is to turn ‘X’ into a ‘full-fledged app,’ that will take time, money, and people — three things the company no longer has,” and also added that Musk “has single-handedly destroyed over fifteen years of a brand that has earned its place in our cultural lexicon,”
Richard Michie, CEO and founder of The Marketing Optimist: Michie luxembourg whatsapp data called the rebranding “absolute marketing suicide” and said that “Elon Musk has been giving a masterclass in how to kill a brand with a slow and painful death.”
Mark Ritson, PhD in Marketing and former professor in MBA programs at top business schools including London Business School and MIT: Ritson wrote an article for MarketingWeek listing “12 Reasons Why Twitter’s Rebranding to X Is a Mistake” and said “He’s making these decisions alone. Running naked through the night. Driven by ego and a burning desire to make his failed acquisition a success.”
What does this rebranding mean for marketers and companies?
A little over two weeks ago, Musk himself tweeted: “We are still cash flow negative due to a ~50% decline in advertising revenue, plus a heavy debt load. We need to reach positive cash flow before we have the luxury of anything else,” in response to user suggestions of recapitalization.
But what should we really be concerned about?
A survey conducted by the Pew Research Center, published in May, provides some data on the behavior of American users on the platform that worries marketers about its potential. It is worth noting that the United States ranks first in the number of users on Twitter.
The Pew Research Center survey highlights two main points:
Those who have used Twitter in the past year have reported taking a break from the platform during that time.
A quarter of them say it is unlikely or not at all likely that they will be on Twitter in a year.
The truth is that, with people considering leaving the platform, companies are hesitant to invest in advertising on Twitter. In an attempt to deal with this, it seems that billionaire Musk's social network has taken some quick actions.
For example, shortly before the rebranding announcement, Musk posted that a monetization plan will be available to anyone who joins the verified account.
This means that users will have the chance to earn money from ads that can be seen on their profiles, as long as they pay to have a verified account.