Formerly known as Twitter, X is redefining itself primarily as a video platform. This follows Elon Musk’s statements last August, suggesting that the platform is poised to become ‘everything app’, gradually distancing itself from its Twitter roots. This redefinition is surprising, given that X originally started as a micro-blogging app with a focus on written content. While advertising messages were once limited to 280-character tweets, the platform now offers new paid advertising solutions, reflecting its evolving nature.
Vertical Videos Are the New Norm
According to internal data released by X, over 100 million users are exposed to vertical videos on the app daily. These videos constitute about 20% of the app’s daily usage. Furthermore, vertical video ads are the format that garners the highest user engagement—seven times more than regular ads.
Additionally, exposure to these videos increases by an average of 10% compared to regular timeline ads. With X’s advertising costs lower than other platforms like Facebook, Instagram, and LinkedIn, advertising on X becomes accessible even with modest budgets.
What Drives X’s Transformation?
In the past, network videos were filmed and presented in a balanced format, simulating a television screen. However, with the advent of smartphones, the trend of vertical videos, or “short-form videos”, emerged and gained traction. Vertical videos are tailored for mobile screens, offering a wider facial area and allowing advertisers to present rich content and capture users’ full attention. Tests conducted on various apps like Snapchat and Instagram indicate that vertical videos lead to significantly higher user engagement compared to horizontal videos. Moreover, their production costs are almost always lower. These findings, combined with X’s own data, are significant for digital marketers.
Impact on Reputation and Revenue Loss
In recent months, X has suffered a significant blow as more and more major companies decided to halt advertising on the platform. Public backlash intensified following Elon Musk’s posts, conspiracy theories circulated on the platform, and the spread of fake news following the events of October 7th (both in Israel and worldwide). Among the companies that ceased their advertising campaigns on the platform are Apple, Disney, Warner Bros., and IBM. All of these developments have led X to lose a significant portion of its reputation, at least among some advertisers.
The severe economic impact prompted Elon Musk to implement a series of measures to mitigate the damage. However, the damage to X’s reputation has not yet dissipated. It will be interesting to see how the recent move will unfold and whether X will manage to regain strength, perhaps due to the emphasis on videos.
