News Analysis
The Gist
- Brand clarity. Rebranding should offer clear direction and value to customers.
- Legal hurdles. Understand potential legal complications before launching rebranding media.
- Concrete benefits. Alongside rebranding, provide a tangible offering that appeals to customers.
The revelation that Elon Musk is rebranding Twitter as 'X' isn't exactly breaking news. The marketing world has been closely following Musk's relationship with Twitter for quite some time now — including Twitter's rebranding. This is particularly true considering his past declarations about his intent to rebrand the platform as 'X,' envisioning it as a global superapp to challenge WeChat.
Musk argues that many of the features of a Tweet have been replaced, rendering the name Twitter as less relevant than it once was. But the rebranding has been controversial, as it risks moving the platform away from the very features that drew an audience in the first place.
What can be categorized as news though are the valuable rebranding lessons that have emerged with the rise of 'X.’ There are lessons aplenty, which may seem to address only Musk himself, but many of which speak to social media and the prevailing direction of the tech industry.
Let’s look at a few Twitter rebranding lessons that marketers can examine and reflect upon.
Brand Messaging Must Be Used Before Reaching Its Expiration Date
Elon Musk had X on his mind for years. But messaging from rebranding can only resonate with customers for so long. Every brand concept has a limited runway to take off successfully.
With little hype apart from Musk's interviews, public remarks and the chatter of his most ardent fanboys, 'X' projects a somewhat vague image, carrying a plethora of meanings depending on the person you ask.
In algebra, 'X' signifies an unknown variable. It represents 10 in Roman numerals and 4 in Suzhou numerology. The character 'X' has various other connotations — a Marvel Comics enthusiast might immediately think of the X-Men. An X-rating is associated with films featuring adult content. During a conversation on the social audio app Clubhouse, I even heard someone characterize 'X' as exuding a "masculine" vibe.
The nebulous nature of 'X' might appeal to Musk, but it poses a significant hurdle for rebranding. While branding strategies may occasionally thrive on a bit of mystery, effective rebranding typically guides consumers toward a clear understanding of a brand's ambitions and the value it aims to offer. A name associated with too many ideas can result in customer confusion and indifference, giving a collective shrug and unsure of what to anticipate.
Related Article: The Slow Death of Twitter and the Birth of X Corp
Know The Legal Aspects For Your Brand Name Before Launching Media & Other Concerns
Legal disputes over the use of a name or similarity of a name to an existing product frequently make business headlines. These conflicts can hinder the launch of brands. Commercially, the letter 'X' carries legal associations that could potentially obstruct Twitter's rebranding efforts. According to a Reuters report, both Meta and Microsoft may have grounds to legally challenge this move.
Another concern is the use of a name for a URL. A generation of customers are used to brand media being consistent. Any inconsistency of presented profiles can misdirect customers for knowing where to find information as well as where to make a purchase.
Enforcing such a change can also stir up controversy. CNBC conducted an interview with Gene X Hwang, the former owner of the @X handle on Twitter. In a bid to maintain consistent branding, Twitter reportedly took over his handle without offering Hwang any financial compensation.
To borrow from an old adage: “The devil is in the details.” While selecting a new name for a brand should ideally be cost-effective and minimally contentious, the details surrounding this choice can make a significant difference.
Clarify the New Benefits That a Rebranding Brings
The advantages of any new offerings to customers must be explicitly communicated and readily apparent. Elon Musk's Twitter rebranding may seem like he's running the gamut of product repositioning. However, he seems to overlook many of the aspects that make Twitter appealing, such as its growth potential and information dissemination role. This is likely an example of not fully considering what customers really want. Additionally, Musk appears to have significantly invested in subscription services without adequately highlighting how customers would truly benefit from such an idea.
In the process of rebranding a product, service or company, it's crucial to pair the new image with a tangible product, service or offering. Renaming a company primarily serves the company's interests rather than the end users. Therefore, it's essential to accompany the rebrand with a concrete offering that resonates with customers’ immediate needs or desires.
Related Article: Elon Musk Launches xAI to Solve the Universe’s Biggest Mysteries
Develop a Strong Niche Community Culture Before Attracting Crossover Interest
Musk aptly views Twitter as a public square due to the diverse cultures it hosts on its platform. Over the years, a broad spectrum of users, including developers, influencers, researchers, community activists, and casual tech enthusiasts, have successfully utilized Twitter to their advantage.
A community gains vitality when it crafts a unique vernacular reflective of its culture, and Twitter excelled at this. People quickly grasped the concept of a “tweet.” Numerous products and services were developed, employing variations of the word “tweet.”
Additionally, in certain social circles, being blocked on Twitter emerged as an unconventional badge of honor.
All these developments represent valuable assets in marketing terms, as they illustrate that your brand has attained significant mindshare among customers. They understand the purpose of your brand and encounter frequent reminders of its name, similar to how "Xerox" became interchangeable with the action of making a "copy", or how people use "Google" as a verb for online searching. Despite having fewer users than Instagram and Facebook, Twitter's ubiquitous nature is a substantial accomplishment in itself.
The success of Twitter can largely be attributed to its flourishing subcultures, despite valid concerns about profitability. Disturbing the elements that foster community interaction could potentially impede rebranding efforts, a lesson worth noting for brands nurturing communities and social media platforms alike.
Choose the Right Halo That Draws The Right Customers Over Time
The name 'X' aligns well with Musk's other ventures, such as SpaceX and xAI. Even within Tesla's portfolio, there is a Model X, a luxury SUV, which resonates with the 'X' theme.
However, this alignment mainly serves Musk's aesthetic preferences, rather than the needs of Twitter users or the prospective customers Musk aspires to attract. A brand needs a halo product or service that caters to the users' needs and offers tangible benefits. As customers engage with this pivotal product or service, their experiences will shape the bedrock of the brand's messaging.
Halo products, services or even marketing campaigns aim to foster recognizable associations for customers. Take, for instance, the renowned “Intel Inside” campaign. Intel's notable sound mark, initially used successfully in the 1990s, was revived to signal Intel's foray into smartphone and IoT processors. As the market was gravitating toward portable devices, Intel found it essential to jog customers' memory of the value it had added to their personal computing experiences.
Halo products typically require time to establish a consistent customer base, thus serving as a reminder that branding — and the consequent image creation among consumers — is a process that unfolds over time. They can effectively assist a rebranding effort by maximizing its potential growth trajectory, steering clear of unrealistic expectations of overnight achievement.
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Conversions Reflect Customer Connection as Much as They Do Analytics
Marketers are justified in considering conversions and conversion rates as vital metrics. However, in order to generate conversions in the first place, platforms require human engagement to lend significance to these metrics. As such, online sales conversions are as tied to customer emotions as they are to data analytics. Engaging activity is key in enticing someone to proceed with a click-through when an offer is presented.
However, it takes years to nurture a community audience, and Musk appears to have undermined that value by dismantling the moderation structure that previously enabled these communities to thrive. Bloomberg estimates that Musk's decision to rebrand Twitter as 'X' has erased $4 billion to $20 billion in value. Like the contemporary AI ecosystem, Twitter once spurred a range of ancillary services. Take TweetDeck, for instance — this innovative Twitter dashboard was eventually acquired after its successful launch.
The true measure of X's audience engagement will be revealed when X rolls out payment and ecommerce services. The recent shift in audience has amplified the current advertiser retreat and advertising budget cuts. Marketing and advertising agencies have expressed concerns that the diminished moderation on Twitter equates to a decrease in brand safety. This worry stems from reports by civil rights groups highlighting a surge in hate speech and online abuse.
Related: Will the Musk Takeover Rescue or Wreck Twitter Marketing?
Good Rebranding Is About Good Timing, Not Just Any Ol’ Timing
When appealing to an audience, it's critical to also consider marketplace dynamics. The most effective rebrands often resonate deeply when they respond to current market trends, not just the brand's desire to change its name.
Part of what made the Threads launch successful was that its basic features spoke to users who felt Twitter’s changes overlooked what users desired. Admittedly, Threads quickly amassed followers but experienced a dip in user engagement soon after — seemingly indicating a fleeting user curiosity. However, the timing of its launch, backed by a reported five-month development time, successfully catered to a growing base of dissatisfied Twitter users.
In an era brimming with diverse options where people can spend their time, social media platforms face a constant challenge in retaining users. Understanding such market dynamics is crucial to ensure endeavors like a rebrand don't become short-lived phenomena.
Twitter's rebranding to X serves as an important reminder of how essential substantive features in products and services are. No matter your industry, there must be a very clear, solid indicator of what customers can expect from your brand, more so than just your own aspirations.
