Whether A-D-L or "X", Ad Buyers Still Losing Confidence

Whether you are a consumer or an industry-insider, you've no doubt discovered that Twitter is now "X". Say "bye bye" to the tweeting bluebird and hello to 'X'tra-ness in all the ways we've come to expect from Musk's X-laden empire - SpaceX, Tesla Model X, his new artificial intelligence venture xAI, and even his son's name, X Æ A-12. But will "X" actually mark the spot this time?

Over a weekend in late July, Musk unexpectedly announced via Twitter that the social media platform would now be referred to as "X," adopting a new logo while retaining many elements of the original Twitter brand. Users will no longer be posting "tweets," but rather "x's," according to Musk. Linda Yaccarino, X's new high-profile CEO, attempted to clarify the changes, stating that "X" represents the future state of unlimited interactivity, integrating features such as audio, video, messaging and payments/banking. Despite this vision, the only apparent changes are the platform's new name and logo, while other elements such as the term "tweet," the website's search bar, and the blue bird logo on embedded tweets on third-party sites remain the same.

The result is a disjointed consumer experience that just feels x-tra confusing. The rapid unveiling falls far short of a cohesive strategic rebrand leaving insiders wondering if it's more of an attempt to shift focus away from Meta's Threads, a direct competitor launched earlier this summer. As opposed to Threads' positioning as a text-based conversation app, "X" aspires to transform into a platform that delivers "everything," according to Yaccarino. Presently, however, "X" needs to prove to the ad-supported media marketplace that it can first do "something" right.

On Labor Day, Musk returned to the news cycle, tweeting that despite efforts to shore up advertiser support with Yaccarino at the helm, the x-factor hasn't quite manifested. Advertiser revenue is down 60%, claims Musk, ostensibly due to pressure from the Anti-Defamation League (ADL), but recent research has uncovered other issues at play that could spell more difficulty ahead.

The Myers Report queried over 500 social media buyers and planners in July and August 2023 as part of its annual ad-supported industry study of 4200+ professionals. The survey revealed that nearly HALF (47%) believe that Twitter, now "X," is "not performing" for marketers or "could be better." This contrasts significantly with the social media industry average of 15%. The top three reasons behind this underperformance are Concerns Over Brand Safety (59%), Lack of Innovative/Creative Opportunities (55%) and Lack of Quality Sales Teams and Personal Relationships (50%).

Moreover, Yaccarino's high-profile move from NBCUniversal to the "X" CEO-ship has not yet had the intended effect of turning advertising investors around. Social media buyers and planners across 14 top-tier agencies plan to decrease their current investment by an average of -43% over the next 6-12 months in light of recent executive management changes.

In an ever-evolving digital landscape, Twitter's metamorphosis into "X" represents a bold stride toward redefinition and expansion. However, the initial feedback from consumers and industry stakeholders suggests a disjointed brand perception, with concerns primarily centered around brand safety, innovation and sales relationships. Despite the visionary overtones proposed by its new leadership, the platform's transition has not been without friction. It underscores the paramount importance of strategic alignment, stakeholder communication and coherent brand messaging. As "X" forges ahead, its challenge will be to reconcile its broadened aspirations with the foundational expectations of its diverse user base and advertiser community. Whether the ADL is in fact exerting pressure on the X-bluebird is not explicitly verifiable -- but social media ad industry respondents are very clear about the platform's underperformance. The forthcoming months will be crucial in determining whether "X" can solidify its new identity while regaining advertiser confidence.

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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.