Elon Musk dangers ‘New Coke’-style advertising blunder after ditching blue chook for ‘X’ emblem

Billionaire Elon Musk dangers a major advertising blunder together with his controversial choice to ditch Twitter’s iconic blue bird branding in favor of a generic-looking “X” emblem – with one knowledgeable suggesting it might rival the infamously ill-received “New Coke” rebrand of the Nineteen Eighties.

The refresh, whereas a part of Musk’s long-stated technique to construct a do-it-all “tremendous app,” was nonetheless a possible “jaw-dropper” for advertisers that “take[s] away from the worth” supplied by the chook app’s current model, Wedbush analyst Daniel Ives instructed The Submit on Monday.

“That is taking a web page out of the ‘New Coke’ branding,” Ives mentioned. “Musk is ripping the Band-Support off on the enduring birdie and going towards the super-app ‘X’ model. It’s a head-scratcher from a timing perspective, however is sensible for the long run given his imaginative and prescient.”

Musk, who projected a giant X onto the exterior of the company’s San Francisco-based headquarters after making the choice Sunday, is making an attempt to lure again advertisers that fled the platform over its unfastened content material moderation practices and to reverse a serious lack of income since he purchased Twitter for $44 billion final yr.

In the meantime, Meta-owned rival Threads has already amassed tens of thousands and thousands of person signups since its debut earlier this month.

Gary Black, the Future Fund co-founder and a famous Tesla bull, overtly questioned the logic behind Musk’s transfer.

“I’m combating rebranding Twitter to X and dropping the little blue chook’s model fairness,” Black said, including that “advertisers who dislike change could wait to see how the branding change impacts promoting efficacy.”

Musk dangers making the worst branding transfer since The Coca-Cola Firm’s notorious choice in 1985 to alter the soda’s famed recipe in favor of an up to date model referred to as “New Coke.” The general public backlash was so extreme that Coke execs rapidly reversed course and went again to utilizing the outdated recipe.

“I actually don’t perceive this “X” enterprise. @elonmusk is a ahead thinker, and possibly has a grand plan, however this one is absolutely onerous to see,” mentioned Albert Bridge Capital founder Drew Dickson. “Looks like dumping years of name worth in a single swoop.”

Whereas the Twitter rebrand appeared to catch many customers off guard, Musk had telegraphed a looming change for months. The billionaire argued the platform would function an “accelerant to creating X, the everything app.” Musk additionally modified Twitter’s company identify to “X Corp” earlier this yr.

Musk is a vocal proponent of the idea of a “tremendous app” corresponding to China’s WeChat, which provides providers starting from funds to meals supply and ride-sharing.

He additionally has had a long-time obsession with the name “X.com,” which was the unique area identify related to a monetary providers startup that Musk based and ultimately merged with PayPal.

Musk and his handpicked Twitter CEO Linda Yaccarino have already touted the “X” rebrand as a serious step in the suitable route – with the latter referring to it as a part of the method for “reworking the worldwide city sq..”

“X is the longer term state of limitless interactivity – centered in audio, video, messaging, funds/banking – creating a worldwide market for concepts, items, providers, and alternatives,” Yaccarino mentioned. “Powered by AI, X will join us all in methods we’re simply starting to think about.”

Social media customers, nevertheless, weren’t satisfied.

“To be truthful if I’d performed this a lot harm to a model in below 12 months I’d additionally most likely change the identify and emblem. However I’d additionally change MY identify and face and stroll into the ocean,” comic Mark Watson tweeted.

“Name it “Twitter X”, that’s cleaner,” joked the account @HighYieldHarry alongside a shot from the scene within the 2010 movie “The Social Community,” the place actor Justin Timberlake’s fictionalized model of Sean Parker tells Mark Zuckerberg rename his web site “Fb.”

“They’re altering the Twitter emblem to an “X”. Actually the icon I click on on after I wish to shut one thing on my pc,” comic book writer Dan Slott said.

Some customers, corresponding to former GOP congressman Joe Walsh, mentioned they’d no plans to name the corporate “X.”

“It’s a free nation. He’s free to alter the identify to X. And I’m free to maintain calling it Twitter,” Walsh mentioned.

A day earlier than he unveiled the rebrand plans, Musk disregarded criticism he has obtained over his oft-erratic management of the corporate.

“Frankly, I really like the destructive suggestions on this platform. Vastly preferable to some sniffy censorship bureau!” Musk tweeted.