Microblogging platform X , formerly Twitter, is reported to have recorded a decline in the number of downloads and weekly active users, following the rebranding of the app.
Analysis from Sensor Tower reports that X weekly active users dropped 4% over the following weeks after the rebrand (August 6-20), while the X app fell four spots in the overall category rankings to 36th.
This analysis follows the controversial rebranding of Twitter to X, which saw some forecasts estimating the company was destroying billions in brand equity.
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Analysts and brand agencies called the platform’s renaming a mistake, which they suggested was completely irrational.
Allen Adamson, the co-founder of the marketing and brand consulting group Metaforce, called Musk branding of X as an “ego decision”. “To me, it’s going to go down in history as one of the fastest unwindings of a business and brand ever”, he said.
Another analyst Irwin suggested that One thing working in Musk’s favor is “The Elon brand,” which might be more powerful than the Twitter brand.”
Meanwhile, despite the decline in the number of downloads and daily active users on the X app, there is one notable bright spot. X rebranding saw an unexpected increase in revenue by around 25% from August 6 to August 20, mostly due to a 24% rise in iOS revenue.
This significant increase in revenue contradicts the idea of brand equity degradation, implying that X was able to retain or perhaps attract more into a segment of its core user base.
Interestingly, there were reports that Twitter’s rebranding appeared to have caused some form of confusion for consumers on the app store. While some were aware of the name change, several other uninformed users still searched for the Twitter app on the app store but were not able to locate it.
This experience reportedly led to the surge of downloads for the Twitter Lite, in the first week of the rebranding. According to Sensor Tower, during this week, Twitter Lite downloads jumped up by around 350%.
This act impacted X revenue, which fell during this first week (July 23-August 5) by 3% overall, primarily due to an 8% decrease in iOS.
However, in the weeks that followed, Meta Threads, saw an uptick in downloads with growth up by roughly 50% while also moving up one spot to 12th Overall in the category rankings.
Also, Bluesky and Mastodon saw downloads increase by 180% and 15%, respectively, an indication that that suggested that those fleeing the rebranded X, turned to Bluesky instead.
Meanwhile, both Twitter-like apps, later experienced a decline in downloads, after the rebranding of X subdued, with installs dropping 25% and 40%, respectively.
With a rather abrupt transition by Twitter to X Corp, the rebranding promises to bring along significant changes to the networking site. The change in branding is not just about aesthetics, but it signals an ambitious foray into new territory.
Powered by cutting-edge AI technology, the rebranded Twitter, now “X,” promises to revolutionize social media as it gears towards becoming an everything app.