The post-election week has been chaotic for Elon Musk’s platform, X, as a massive user exodus coincides with potential advertiser interest. More than 115,000 US users deleted their accounts the day after the election, marking the largest single-day departure since Musk’s takeover. Many of these users are turning to Bluesky, a smaller competitor, which has gained 1 million new users since the election, pushing its total user count to 15 million. Despite this growth, Bluesky remains far behind X’s historical user base of 330 million reported in 2019.
Amid the user turmoil, advertising trends on X tell a more complex story. Brands that left over concerns about content moderation may reconsider their stance following the election of Donald Trump. Experts predict some advertisers will return to X, seeking political leverage under an administration where Musk is expected to wield influence. For businesses, aligning with X could be a strategic move to navigate the new political landscape.
Still, X faces a steep climb. Advertising revenue from the platform’s top 100 advertisers in the US fell by 68% in the first half of 2023 compared to 2022. Musk’s strategy of reducing content moderation alienated key brands, leaving X financially vulnerable. The potential return of advertisers may offer some relief, but the platform must rebuild trust and re-establish its value proposition in a fractured market.
Bluesky’s rising prominence adds another layer of complexity. While it’s currently a smaller player, its rapid growth shows there’s demand for alternatives to X. As Bluesky climbs app charts and attracts disenchanted users, X will need to act decisively to stem further losses. The stakes are high as the platform works to balance user retention and advertiser appeal in an evolving digital landscape.
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