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The Elon inspired decline of X reportedly continues

X, formerly known as Twitter, continues to slump in engagement under the management of Elon Musk. Is there a way to stem the continuous decline, or is the platform living on borrowed time?

On reflection, surely L would have been a more appropriate title for Elon Muskโ€™s Twitter rebrand.

Since the tech tycoon acquired the rights to the blue bird in October 2022, the platform has lost approximately 13% of its daily active users, according to new research analytics from Apptopia.

Under the 52-year-oldโ€™s tumultuous stewardship, an estimated 140 million monthly userbase has reportedly nosedived to 121 million with 5% slumps occurring consecutively over August and September. Thatโ€™s no coincidence, either.

It was during this period that Musk pushed through the ambiguous rebrand to โ€˜Xโ€™ reportedly igniting a 2,000% spike in negative daily app reviews.

โ€˜The keywords โ€œlogoโ€ and โ€œblue birdโ€ appeared as top 10 keywords left in user reviews, each with negative sentiments attached to them,โ€™ revealed Apptopia content director Adam Blacker. I personally recall seeing the term โ€˜vanity projectโ€™ a whole lot too.

Twitter's rebrand failed

Calling shenanigans on Linda Yaccarinoโ€™s (X CEO) boast that audience usage was at an all-time high in July, Apptopiaโ€™s data tells a very different story. Muskโ€™s assertions about record user growth in November seem to match up at least, though those users didnโ€™t stick around for long.

Those who continue to use X, by and large, are legacy users. In-fact, the top 10% of returning visitors account for 72% of all screen time on X โ€“ categorically not a continuous flow of new users excited about possibilities brought on by the rebrand.

Itโ€™s even rumoured within the industry that Muskโ€™s status as the most followed account with the highest viewing metrics are purely down to an engineer writing a piece of shady code for the app.

Having taken on billions in loans from banks and private investors to acquire Twitter in the first place, itโ€™s believed that the platformโ€™s value has since sunk by around two thirds. Still, Muskโ€™s unwavering (or blind, if you prefer) optimism saw him assure investors that the company could be worth $250bn in the not-too-distant future. Hmm.

It would seem advertisers arenโ€™t quite so keen on grandiose claims, however, with Musk revealing last month that advertising revenue was down 60% since he made the leap. Many large agency executives are yet to see a significant return from X, and though brands are starting to return, many are spending much less on campaigns.

Add to this substantial knock-back the probability of numerous trademark lawsuits for the coveted X licence โ€“ of which there are 900 US trademark registrations โ€“ and the whole enterprise starts to seem increasingly pie in the sky. Even for Musk.

Advertising remains Xโ€™s primary money maker, but with question marks over the long-term projections you can expect the onus to return to subscribers once again. Exactly how they plan to make a buck out of those remaining this time, though, no one knows.

Nonetheless, Iโ€™m going out on a limb and predicting it wonโ€™t be worth it.

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