Areto - Social Media Meltdown: Is X Over? Brand Exodus, TikTok Rise, and Your 2024 Strategy

A Deep Dive into the Emerging Trends and Strategies Shaping Today's Social Media Landscape

With the controversy surrounding Elon Musk's leadership of X, we're seeing some pretty seismic shifts in the social media landscape. What does this mean for digital marketing and our beloved sponsorship strategies? This blog aims to help inform that future strategy.

X: Out with a Bang?

In the rollercoaster ride that was 2023, X has seen a substantial nosedive in advertising revenue, so much so that hefty brands have started to pack up and move out. Word on the street is about a 60% drop in U.S. ad revenue. That's not just a number folks, that's a vibe check for X’s marketing street cred and represents a fundamental shift in the effectiveness, trust and reliability of X as a marketing tool.

Why is X going downhill?

The decision by Musk to restrict public access to Twitter data exacerbates issues with toxicity, as it limits external monitoring and accountability.
Musk has been accused of boosting hateful speech and sponsors don’t want to see their ads next to content that doesn’t reflect their values.
Misinformation is flourishing, due to lack of moderators at X and changes to the blue check mark make it harder to determine the legitimacy of sources.

Quality Vs. Quantity

Consider this: your post is stuck between the virtual crevices of controversy and scandal, no amount of viral content can wipe clean an image that's marred by algorithm-filled drama. So are marketers stuck between a rock, a hard place, and an angry tweet?

That’s why a new debate is taking shape among marketers: does staying on X now pose a risk to a brand's reputation? And is that risk greater than, say, the risk of losing sponsorship dollars because of smaller audiences on alternative platforms like Facebook, Instagram and YouTube?

On the Risky Business side of the coin, marketers and digital mavens are arguing that staying on X platform could potentially tarnish a brand's reputation. Why? Well, imagine when your posts are sandwiched between unsavory content or when the platform's algorithm favours scandal over substance. No number of double-tap-worthy posts can make up for a brand's image that's perceived to be as contaminated as the sketchy posts they sit next to on users' feeds. And trust us, folks, in this digital age, perception is reality. News can travel faster than a rockstar’s comeback tour and misperceptions can spread quicker than nostalgic GIFs of a 90s sitcom.

On the flip side, we have the #FollowTheMoney advocates who believe that a potential contraction in audience size on alternative platforms like Facebook, Instagram and YouTube may not bode well for acquiring those alluring sponsorship dollars. Let's face it, when you've got a boardroom full of bigwigs to impress, larger engagement stats on X can seem as shiny as a fresh MVP trophy. Not to mention, award givers are often more starry-eyed over significant engagement metrics and their impressive (even if somewhat inflated) reach numbers. Remember when popularity was the queen bee in high school? Well, she's still ruling the roost and she wears the crown of sponsorship attraction.

Deciding to abandon a platform that's been your digital homestead is tough. But given X’s itinerary, the long-term risk to brand reputation may override the challenges of journeying to more stable and trustworthy social media towns.

So given the problems on X, why are companies still there?

Out With The Old, In With the New-Ish

Many organizations need to honour existing sponsorship contracts involving X that were established before the platform's downturn. While it's prudent to fulfil these existing commitments, it's equally crucial to strategically plan for the future. This planning involves a pivotal shift in marketing strategies towards other, more stable platforms.

X is dead. Long live TikTok

With Threads still unproven and not luring the large crowds away from X, where can brands make up the lost reach and engagement numbers?

The answer is TikTok.

While X has traditionally been a hub for real-time conversations and trending topics, TikTok's algorithm excels in amplifying content and reaching wider audiences. This difference is crucial for brands seeking to maximize their online presence.

Social Media Landscape

TikTok: Features a unique algorithm that highlights user content on a highly personalized 'For You' page, adapting quickly to user preferences to maximize engagement and reach.
Instagram and Facebook: Engagement largely depends on existing follower networks and targeted advertising, differing from TikTok's approach.
LinkedIn: Tailored for professionals and business audiences, it focuses on a content-driven strategy, emphasizing industry-relevant posts and professional networking.
X: Known for prioritizing real-time content and trending topics, it used to be the go-to platform for news and immediate public discourse.
Threads: Its algorithm emphasizes user engagement and interaction. Posts that receive more likes, comments, or shares gain greater visibility in feeds, encouraging a community-centric content approach.

In the current narrative, TikTok emerges as a desirable alternative. With an advanced algorithm and towering engagement rates, TikTok is a gold mine for brands to engage with audiences. Factor in their dominance in the Gen Z and Alpha market, and TikTok becomes more than just an option; it’s a strategic choice for forward-thinking brands aiming to engage with the next generation of consumers

🚨Caveat Alert!🚨

If there's one golden nugget to glean from X's saga, it's the perils of being overly dependent on a single social media platform. Yes, folks, TikTok’s reach and engagement numbers are as alluring as a hit track on loop. And yes, it's unbeatable when it comes to engaging the Gen Z and Alpha crowd. X’s rollercoaster journey underscores the necessity of diversification, and the keys to success are adaptability and a broad-ranging approach. Because in this fast-paced digital landscape, it’s about ensuring your brand's presence all over the virtual map!

And remember: Not all engagement is good engagement. Quality interactions are greater than a high quantity of interactions, ultimately crafting a healthier, more authentic and long-lasting online community.

Looking Ahead

As the digital world turns a new page, it's more important than ever to remain nimble and well-informed. The migration from traditional platforms like X to emerging ones like TikTok and Threads is not merely a switch in tools—it's a strategic choice in how we interact with online communities.

As we launch our moderation tools on TikTok, we aim to provide you with detailed insights and helpful strategies to help you confidently navigate changes to social media, ensuring your brand adapts and thrives online.

Is X over?