While many businesses have closely observed what effects Musk’s continued transformation of Twitter may have, the unexpected change in brand identity has likely impacted their communication strategies.
This article will delve into some notable immediate influences.
Uncertainty over paid media campaign budget allocation
In a recent post, Elon Musk revealed that his platform is now experiencing a negative cash flow because of a 50% decline in advertising revenue and a heavy debt load. The shift to X without sufficient clarification or future proposition may strip the platform of the consumers’ positive associations and drive their attention to other alternatives.
Consequently, this gives rise to a climate of uncertainty among communication strategists and media planners. A recent survey by Campaign revealed that many are likely to adopt a ‘wait-and-see’ approach before making major budget decisions.
Lower engagement or reach yielded
Before the identity revision, the leading data provider Insider Intelligence expected monthly Twitter users worldwide to decrease by approximately 4% in 2023 and another 5% in 2024 due to the fundamental changes its owner is making.
Following the visual and name shift that confuses consumers and businesses and puts brand loyalty to the test, this may draw users towards competitors. Consequently, branded content on X may experience a lower ROI in reach or engagement than previously expected.
Difficulty in creating brand assets on X
The digital outlet featuring trends that transform media and marketing Digiday underlined the concerns of some marketers about X’s future.
The lack of clarifications or directional plans for the rebranding leaves them unable to plan their marketing strategies and create brand materials. Many are reportedly still determining how the rebranding will unfold or if the platform may even revert to being Twitter.
The absence of a clear roadmap for brand asset creators has created a lack of confidence in this new brand, resulting in uncertainty over how their asset designs can be adjusted to X.
While many stakeholders are flustered with this sudden significant change, X’s leaders are optimistic about the ensuing revolution. Regardless of what transformations they have in store, it is essential that communicators and business leaders closely follow the upcoming announcements on how the vision for this ‘everything’ application will be realised. Doing so will enable them to stay ahead of the competition and adapt digital strategies to any upcoming new functions and features.