To wrap up 2023, Mediaweek is looking at the biggest trends, events, platforms, and brands of the year.
Welcome to Mediaweek’s A to Z of 2023 … and beyond.
By Matt Morgan, managing director, lowercase
Wow, what a year for Elon Musk. I’m sure, like me, you have enjoyed strapping in for the rollercoaster ride that saw the Musk brand metamorphose from the ‘Genius’ behind SpaceX and Tesla to a ‘disruptor’ at the helm of X (formerly Twitter). Watching from the sidelines, his actions and decisions at X not only confused me but also seemed to bamboozle most other commentators, sparking widespread debate about both Musk and the platform’s future. So, let’s ride the rollercoaster once more as I take you through some of my highlights of Elon’s lowlights in 2023.
The Forced Purchase
From the very start, Musk’s acquisition of Twitter was compelling viewing, marked by legal battles and last-minute decisions. Initially, Musk seemed reluctant to finalise the purchase, citing concerns over inflated user numbers and bot presence. However, facing a potential legal defeat, he proceeded with the acquisition at an eye-watering $44 billion.
The Workforce Overhaul
Musk’s first order of business was a sweeping reduction of Twitter’s workforce, mercilessly cutting engineers, content moderators, and senior executives, with tech giants like Meta and Google following suit. In his quest for ‘freedom of speech,’ Musk reinstated controversial figures like Donald Trump and right-wing conspiracy theorist Alex Jones, sparking outrage.
The Rebrand
With advertisers retreating in response to reduced moderation and increased extremist content, Musk sought innovation as a revenue driver. Attempts to monetise features like the blue tick, however, fell short in compensating for the lost ad revenue. Then came the abrupt rebrand of Twitter to X, which, according to Scott Galloway (check out my podcast recommendation of the year, Pivot), eroded $10 billion in brand equity.
Advertiser Exodus
Musk’s outspoken nature on the platform has kept me watching, but it hasn’t been good for business. His recent promotion of an anti-Semitic conspiracy theory led to a mass exodus of major advertisers like Disney, Apple, and Walmart, severely impacting X’s financial health. Musk’s unapologetic stance, exemplified by his startling ‘Go fck yourself’ TV outburst against advertisers, again had me scratching my head in confusion.
The Future of X
So far, the power of Musk’s financial backing is keeping X afloat despite the $75m drop in advertising revenue. Whilst the gap between X and advertising needs to be closed, it is the widening gap between X and its user base that I think will ultimately be its downfall.
I’ve not been active on X/Twitter in a long time. I find the platform outdated, dull and lacking in innovation. I looked up when Meta released Threads; for me, the format is worn out and no longer resonates with users. This is Elon’s biggest challenge with X – even above the fact that Yaccarino is still allowing him to post (tweet?!).
Part of me is still expecting Elon to pull off a miraculous transformation of X by turning it into the West’s answer to WeChat, but there has been little concrete evidence to support this ambition in 2023. If Musk fails to meaningfully drive innovation on X, even if he somehow tempers his outbursts, I predict X’s slide towards bankruptcy will become inevitable in 2024.
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