Microblogging platform X, formerly known as Twitter, has experienced a decline in downloads and weekly active users following its rebranding. According to analysis from Sensor Tower, X’s weekly active users dropped by 4% between August 6 and August 20, and the app fell four spots in the overall category rankings, landing at 36th place.
The rebranding of Twitter to X has sparked controversy, with some experts estimating that the company has destroyed billions in brand equity. Analysts and brand agencies have criticized the renaming of the platform, calling it a mistake and completely irrational. Allen Adamson, co-founder of the marketing and brand consulting group Metaforce, even went so far as to say it will go down in history as one of the fastest unwindings of a business and brand ever.
However, despite the decline in downloads and active users, X has seen an unexpected increase in revenue. Revenue rose by approximately 25% between August 6 and August 20, primarily due to a 24% increase in iOS revenue. This contradicts the notion of brand equity degradation and suggests that X was able to retain or possibly attract more users within its core user base.
Interestingly, the rebranding of Twitter seemed to cause confusion among users on the app store. While some were aware of the name change, many uninformed users continued to search for the Twitter app but were unable to locate it. This confusion led to a surge in downloads for the Twitter Lite app during the first week of the rebranding, with an increase of around 350%.
During this period, X’s revenue fell by 3% overall, primarily due to an 8% decrease in iOS revenue. However, in the following weeks, Meta Threads experienced a 50% increase in downloads and moved up one spot in the overall category rankings to 12th place. Additionally, Bluesky and Mastodon saw increases in downloads of 180% and 15% respectively, suggesting that users who were dissatisfied with the rebranded X turned to alternative platforms.
With its transition to X Corp, Twitter’s rebranding promises significant changes to the platform and signals an ambitious foray into new territory. The rebranded X, powered by cutting-edge AI technology, aims to revolutionize social media and position itself as an all-encompassing app.
In conclusion, the rebranding of Twitter to X has resulted in a decline in downloads and weekly active users. However, the unexpected increase in revenue suggests that X has been able to retain or potentially attract users within its core base. The confusion surrounding the rebranding has led to a surge in downloads for the Twitter Lite app, while alternative platforms like Meta Threads, Bluesky, and Mastodon have also seen fluctuations in downloads. X’s transition to X Corp represents a bold step towards transforming social media and creating an all-inclusive app experience.
