X’s 12 month decline
It’s been a year since Musk’s takeover of X, a period marked by more developments than a typical government inquiry. The platform has undergone many strategic shifts – from Musk telling advertisers to ‘Go f**k yourself’, to ambitiously aiming to become the ‘everything app’ of the West, akin to China’s WeChat. This of course is a goal that other apps like Snapchat, Meta, and Uber have unsuccessfully pursued.
Significant changes include Linda Yaccarino stepping in as the new CEO and a drastic reduction in the workforce, with over 80% of the 7,500 employees either leaving or being laid off. However, the most notable change is the app’s valuation drop from $44bn to $19bn since Musk’s acquisition.
The user base of X has seen a decline, attributed to the app’s deteriorating reputation. In response, X introduced three tiered subscription plans priced between $3 and $16 to offer more options to users. The Premium Plus tier, the priciest option, allows for an ad-free experience, positioning X as a direct competitor to Threads by catering to diverse user preferences.
X now compensates content creators who are X Blue subscribers (those who pay for a verified tick) and have over 500 followers. This strategy aims to attract quality content creators to the platform, enhancing user engagement and potentially increasing monthly users as people return for superior content. For marketers, it’s crucial to assess whether their target audience remains on X or has shifted to Threads.
Threads stagnates after a rapid rise to the top
Now to delve into the recent developments at Meta’s Threads – which has experienced a series of updates, similar to X. Threads initially enjoyed a rapid ascent but now appears to have plateaued, becoming just another app for many users. Originally launched as an alternative to Twitter’s then-controversial environment, Threads offered a more streamlined micro-blogging experience. However, it hasn’t been without its challenges.
A significant improvement has been the introduction of a search function, a feature that was notably absent at launch. This addition, enabling users to find specific accounts and topics, has been a major step forward in user experience.
Yet, Threads still faces a major limitation: its posts are not searchable on Google or other search engines, unlike those on X. This presents a potential dead-end for marketing efforts.
Threads is tightly integrated with Instagram, requiring an Instagram account to join and making it impossible to delete a Threads account without also deleting Instagram. This integration extends to advertising, as Threads uses data from both platforms to personalise ads and experiences. The potential for advertising on Threads is significant, considering the rich data pool, and we’ll be keeping tabs on the implications for advertisers as things progress.
Despite its early surge to 100 million users, Threads’ Monthly Active Users (MAUs) have stabilised, and advertising on the platform is contingent on achieving a critical mass. Zuckerberg, in the company’s third-quarter earnings call, mentioned nearly 100 million MAUs, with aspirations of reaching 1 billion in the coming years.
Comparing X and Threads, they stand at different junctures. X is controversially reinventing its once-respected brand with divisive new features, while Threads is steadily enhancing user experience through positive updates. From a reputation and engagement standpoint, Threads currently has the upper hand, continually adding features that position it as a formidable rival to X. Although advertising on Threads may be some time away, it’s an app worth monitoring closely for future developments.
