Elon Musk’s acquisition of Twitter and rebranding as X was initially met with skepticism from the marketing world. Many predicted that the new platform would collapse, but instead, X seems more relevant than ever. Despite firing 80% of staff, alienating advertisers, and maintaining looser content moderation policies, X has seen a significant increase in ad revenue.
Several factors contribute to X’s unexpected success. Firstly, there isn’t another platform like X that offers the same blend of real-time news, events, and communities. With its 600 million monthly users, X has tapped into a niche audience willing to tolerate noxious content due to the lack of legitimate alternatives.
Cultural shifts also play a significant role. The public’s desensitization to toxic discourse has led to increased tolerance for such content on X. Meanwhile, millions of users are drawn to X specifically because it provides access to toxic discussions they can’t find elsewhere.
The irony lies in Meta’s decision to follow X’s lead by abandoning human content moderators across its platforms. This move may yield significant savings for Meta, as Facebook and Instagram are much larger than X.
Elon Musk’s disdain for traditional advertising has been well-documented. He initially sought new revenue streams through premium subscriptions, AI tools, or the upcoming X Money service. Although he can’t quit ads entirely, Musk will try to sell them on his own terms, as evident in his firm stance at the 2023 DealBook Summit.
The market and culture have moved in Musk’s direction, with advertisers reevaluating their priorities and aligning themselves with a more extreme worldview. While it remains uncertain whether X will secure more ad revenue, one thing is clear: many advertisers are actively recalibrating their politics to match Musk’s stance.
Source: https://www.adweek.com/social-marketing/can-elon-musk-bend-marketers-to-his-will