Elon Musk's X.com Rebranding Faces Challenges Amid Declining User Engagement and Advertiser Concerns

Twitter's rebrand to X.com, spearheaded by Elon Musk, faces obstacles with dwindling user engagement and advertiser apprehensions. Despite ambitious plans for a 'super app', tangible transformations are not yet evident. The platform's struggles include a significant drop in daily active app users and reduced ad spending from major companies like Apple and Disney.

Twitter has officially rebranded to X.com, with the original Twitter.com URL now redirecting to the new site. Elon Musk announced this change via a tweet, noting that all core systems are now on X.com. This rebrand follows Musk's previous rebranding effort in July, which replaced the iconic Twitter bird logo with an 'X' symbol.

Musk originally acquired the X.com domain in 2017. The rebrand aims to transform the platform into a multi-functional "super app" offering services ranging from banking to entertainment. Despite this vision, tangible changes are yet to be widely seen.

The platform has experienced significant declines in user engagement. According to Sensor Tower, daily active app users decreased by 15% to 174 million as of February. Major advertisers, including Apple, Disney, and Coca-Cola, have reduced their advertising spending due to concerns over content moderation.

In December 2022, Musk indicated that an advertiser boycott could potentially lead to the company's bankruptcy. The changes also include a shift toward subscription services, AI chatbot integration, and a new user sign-up fee overseas.