Elon Musk’s obsession with the letter X has captured the Twitter brand, ending the 17-year-old legacy that has endeared millions of people from around the world.
Musk acquired Twitter for $44 billion last year but has replaced the bluebird logo that has identified the text-based app for nearly three decades now with X. The move is understood to be part of his efforts to turn Twitter into something that is originally his idea.
The X idea is to create an “everything app” that mirrors China’s WeChat, a super app that offers a wide range of services, including payments. However, analysts believe that the move could further exacerbate the damaged relationship that exists between Musk and advertisers.
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The decision to rebrand follows months of erratic behavior exhibited by the world’s wealthiest man, which resulted in a significant loss of users and the further departure of advertisers. This tumultuous period has left Twitter in a precarious financial state and made it increasingly susceptible to competition.
Killing an iconic internet brand is “extremely risky” at a time when rival apps such as the new Instagram Threads and smaller upstarts such as Bluesky are luring users, CNBC quoted Mike Proulx, an analyst at Forrester, as saying.
Musk has “singlehandedly wiped out over fifteen years of a brand name that has secured its place in our cultural lexicon,” Proulx said in an email.
Musk appears to be betting he can get rid of Twitter altogether. Over the weekend, he introduced the new X logo and said in a tweet that “soon we shall bid adieu to the Twitter brand and, gradually, all the birds.”
Unlike Twitter, X offers a lot of services under its “everything app” umbrella.
Linda Yaccarino, who Musk hired as CEO in May, said in an email to employees Monday that the company will “continue to delight our entire community with new experiences in audio, video, messaging, payments, banking – creating a global marketplace for ideas, goods, services, and opportunities.”
Where the challenge lies per CNBC
According to Proulx, Musk’s ambition to transform X into a super app demands substantial resources, including time, money, and a skilled workforce, which Twitter currently lacks. Musk himself disclosed that the platform experienced a significant 50% drop in advertising revenue and needs to achieve positive cash flow before considering any other initiatives.
The concerns raised by some advertisers stem from the platform’s association with hate speech, racist content, and offensive comments, as documented by civil rights groups and researchers. Musk attempted to offset the advertising decline through a premium subscription service, but the $8 monthly fee would require a massive number of subscribers to make up for the losses.
With the rebrand, Twitter’s familiar “tweets” will be replaced with a new terminology, as the company attempts to navigate its path forward. However, advertisers seem hesitant to increase their spending on the platform, as noted in a recent survey by William Blair. Despite this, there are indications of improvement in the overall digital ad market, as reported by the same survey.
The name change signals a major shift in Twitter’s identity, leading some to view it as a somber day for both users and advertisers. Analyst Jasmine Enberg considers the rebrand a clear sign that the Twitter of the past 17 years is gone and that Musk, rather than any other app, has always been the most likely “Twitter killer.”
In summary, the rebranding effort reflects Twitter’s endeavor to address its challenges under Musk’s leadership, but it also underscores the uncertainties and hurdles the platform faces in winning back advertisers and revitalizing its position in the digital advertising landscape.
Update: 7/28/23
Twitter’s rebranding looks to be complete, for now. The company’s official handle @X has replaced the old Twitter handle, which is now inactive. As part of the changes, the Twitter Blue subscription service is now @XBlue, and support- and API-related handles have also been tweaked. At the same time, X has slashed some ad rates by 50% to win back clients after Elon Musk’s tumultuous acquisition and CEO tenure. Some marketers have criticized renaming the social media site, saying it amounts to throwing away “15 years of brand value.” The original owner of @X wasn’t forewarned or compensated, but he received a letter that offered merchandise and a tour of X’s headquarters as a “reflection of our appreciation.” (LinkedIn News)