X records increased revenue after rebranding despite 4% decline in weekly users

It is no surprise that Elon Musk’s radical rebranding of Twitter as X attracted a lot of attention and led to a number of interesting developments. However, a report has shown that just after the rebranding, X’s downloads declined.

This was after further investigation by app intelligence company, Sensor Tower that revealed a complex story involving user engagement, revenue, and platform dynamics of X, formerly Twitter.

Download and user engagement shifts

With all of the drama surrounding X’s rebranding, one might predict a significant drop in downloads. This seemed to be true as a Thread post by Eric Seufert showcased a steep decline in its Top Downloaded chart position across both platforms since the app was rebranded to X.

Furthermore, X’s app dropped from third to 36th in the overall category rankings, demonstrating the complexities of the rebranding response. This could have also been the influence of Instagram’s Threads app.

Also, Sensor Tower’s analysis of the post-rebranding period, highlighted from August 6 to August 20, reveals a 4% decrease in weekly active users.

However, the decline did not spell doom for the platform. Despite grave predictions of brand equity erosion, the X rebranding resulted in an unexpected increase in revenue by around 25% from August 6 to August 20, mostly due to a 24% rise in iOS revenue.

This surprising increase in revenue contradicts the idea of brand equity degradation, implying that X was able to retain or perhaps attract more into a segment of its core user base.

Confusion and Consumer Behavior

Following the completion of the rebranding process and the consequent alteration of the name, the changes generated a discernible impact, leading to a reduction in the number of downloads for the newly branded Twitter/X app.

However, it triggered a significant upswing in the installation of Twitter Lite during the initial week of the rebrand. The report indicated a remarkable surge of approximately 350% in Twitter Lite installs within the very first week subsequent to Twitter’s rebranding.

For Twitter/X, there was a decline in installs across both iOS and Android, down 22% and 18% respectively, However, this surge in Twitter Lite downloads, combined with X’s downloads, ultimately drove an 11% growth in the Twitter ecosystem of apps.

Read Also: Twitter is no more, meet Elon Musk’s everything app, “X” and what users think of it

Effect on Competitors and App Ecosystem

According to the report, the rebranding of X had an impact on competitors and similar platforms. Instagram Threads, Bluesky, and Mastodon were particularly affected by X.

Threads saw a 70% drop in downloads during the first week after the rebranding, whereas Bluesky and Mastodon saw opposite results.

Bluesky reported a 180% rise in downloads, indicating a user shift away from the newly rebranded X. Mastodon’s modest 15% gain reflected a similar tendency, but on a lesser scale.

This revival coincided with the introduction of new features, including a chronological feed. Bluesky and Mastodon, on the other hand, faced diminishing downloads, reflecting the fluctuating dynamics of user preferences.

Finally,

Amidst the rebranding’s resulting consumer perplexity, the resonance of the name “Twitter” remains potent within the app store landscape.

Evidently, Twitter Lite experienced a notable uptick in downloads, marking a 50% surge from the preceding timeframe.

This phenomenon underscores its capacity to divert potential installations from the freshly rebranded X, reinforcing the enduring influence of the Twitter brand.