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Hi, everybody. 
Welcome back to the Elon Musk 

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podcast. 
Today, we're focusing on the 

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precarious financial situation 
at X, formerly known as Twitter.

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And the topic at hand centers on
the drastic decline in 

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advertising revenue, challenging
the optimistic picture presented

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by Elon Musk and CEO Linda 
Yaccarino. 

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Notably, a recent report from 
marketing consultancy Ubiquity 

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indicates that the number of top
advertisers on X has plummeted. 

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We're not talking about a small 
dip here. 

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The statistics are actually 
staggering. 

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Coupled with this issue is the 
introduction of a $1.00 annual 

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fee for new users, a move 
explained as an anti spam 

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measure but raising eyebrows as 
potentially a last ditch effort 

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to generate revenue. 
And as we examine the data in 

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the leadership's public 
statements, the critical 

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question emerges. 
Is X in the midst of a 

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resurgence or is it teetering on
the edge of financial collapse? 

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Now stick around. 
We explore a few of these topics

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to see where X may be going and 
see where it's been. 

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And 1st up, let's talk about the
Ambiquity report. 

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This consultancy works with 70 
out of the 100 top spending 

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advertisers, A respectable chunk
of the advertising world 

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Ambiquity revealed that only two
of their clients bought ads on X

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last month. 
It declined from 31 in September

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of 2022. 
That's not just a decrease, 

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that's a huge freefall. 
And to compound with this issue,

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Ruben Schurz, Ambiguity's Chief 
Strategy Officer, stated that 

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this level of advertising 
departure is unprecedented for a

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major advertising platform. 
This dire situation blatantly 

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contradicts the upbeat narrative
advanced by Elon Musk and Linda 

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Yaccarino, who've been claiming 
a return to normalcy. 

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You know, it's not just the loss
of revenue that's concerning. 

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It's also the credibility of the
platform's leadership. 

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If Musk and Yaccarino are not 
transparent about the real state

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of affairs, it raises some 
questions about whether they can

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be trusted. 
Now, Ubiquities findings cast a 

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shadow of doubt over the public 
statements coming out of X's 

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corner offices. 
Now let's shift our focus a 

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little bit to the one dollar 
annual fee that X has started 

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charging new users in just New 
Zealand and Philippines for the 

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time being. 
On the surface, Elon Musk argues

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this is designed to deter bots 
and spam from polluting the 

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platform. 
However, credits are skeptical, 

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speculating whether this is just
desperate move to scrape 

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together some more revenue. 
And also, do most bots come from

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New Zealand in the Philippines? 
No one really knows. 

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And adding another layer to this
issue is how this fee might 

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deter new user adoption. 
While a dollar may not seem like

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a lot, it's a psychological 
barrier for people used to free 

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social media platforms. 
This could push potential new 

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users toward alternative 
platforms that don't charge an 

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entry fee, like Threads from 
Meta. 

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And the existing user base also 
might view this new fee as a 

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worrying sign of things to come.
If X is willing to charge new 

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users, what stops them from 
monetizing other aspects of the 

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platform? 
Will this be the first in a 

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series of charges leading to a 
fundamentally different user 

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experience? 
It's only time that'll tell now.

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From the advertiser standpoint, 
this situation is quite grim. 

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A report from News Guard noted A
majority of viral misinformation

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concerning the Israel Hamas 
conflict on X originated from 

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verified users. 
This is a significant concern 

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for advertisers, who must 
consider brand safety. 

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They don't want to associate 
themselves with a platform that 

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becomes a breeding ground for 
misinformation now. 

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Moreover, a report by digital 
marketing firm Similar Lab 

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indicated a significant decline 
in user traffic on X. 

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With fewer eyeballs on the 
platform, the value proposition 

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for advertisers dwindles. 
It's kind of a snowball effect 

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as users leave, advertisers find
less value, which in turn makes 

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the platform less attractive to 
new users. 

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And Musk's decision to appoint 
Lydia Ocarina, formerly of NBC 

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Universal is CEO, seemed to be a
move aimed at restoring 

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advertiser confidence. 
However, with the erratic policy

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changes and lack of consistency 
and leadership, advertisers may 

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not be convinced that X is as 
stable or as a reliable platform

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for their campaigns. 
So where does all this leave us 

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now? 
To put it plainly, X is 

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navigating troubled waters. 
Between the decline in 

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advertisers and the new user 
fee, there's a disconnect 

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between what the leadership 
portrays and what the data 

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reveals. 
This raises concerns not just 

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about the platform's financial 
stability, but also about the 

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credibility of its leaders, Elon
Musk and Linda Yaccarino. 

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And we've discussed the Ubiquity
report detailing the alarming 

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drop in advertisers, explored 
the implications of the new 

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$1.00 fee, and consider the 
perspective of advertisers who 

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are increasingly reluctant to 
invest in X. 

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Taken together, these elements 
paint a picture of a platform 

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facing a multitude of 
challenges, with a leadership 

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whose public statements are 
increasingly being called into 

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question. 
Now let's shift gears a little 

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bit from the advertisers to the 
users. 

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X has seen a significant decline
in daily active users since 

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Musk's takeover, and changes to 
the platform have been largely 

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unpopular. 
We'll break down some of the 

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story into five essential Parse 
to give you a comprehensive look

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of what's happening at X under 
Elon Musk's control. 

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Now Aptopia, a leading mobile 
research firm, recently revealed

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that since Elon Musk's 
acquisition is subsequent 

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rebranding of Twitter as X, the 
app has lost about 13% of its 

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daily active users. 
The user base has contracted 

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from 140 million to around 121 
million and the decline shows no

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signs of stopping. 
This comes as a stark contrast 

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to the claims made by Ex's CEO 
Linda Yaccarino that the usage 

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of the platform is at an all 
time high. 

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While the app may have had a 
momentary spike in new users 

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following Musk's acquisition, 
the data indicates that this was

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short lived. 
This new information should 

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quell any debate over Musk's 
positive impact on the platform,

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revealing instead all waning 
user base and dwindling 

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engagement levels. 
Now, under Musk's leadership, X 

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has undergone several changes 
that have not been well received

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by the user community. 
The platform was initially known

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for delivering real time updates
on current events, giving it a 

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unique edge over the 
competition. 

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However, changes to the News 
Feed algorithm now favor 

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profiles that are far from 
traditional news sources such as

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ChatGPT, Influencers and Edge 
Lords. 

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Additionally, the introduction 
of a paid verification feature 

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has put a strain on users 
ability to identify credible 

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sources. 
The platform has consequently 

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seen less engagement and has 
given users fewer reasons to 

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stay on board. 
Now when Musk decided to rebrand

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Twitter to X, he discarded a 
brand name that despite its 

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issues, was globally recognized.
This decision has had a 

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significant impact on the 
platform and in the months 

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following, the rebrand X 
experienced a month over month 

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loss of more than 5% of its 
daily users, and user reviews 

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indicate that the new brand and 
logo are not resonating with the

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community, exacerbating the 
decline in user numbers. 

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According to Aptopia's Adam 
Blacker, there was a roughly 

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2000% spike in negative daily 
app reviews post rebrand, with 

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the terms Logo and Bluebird 
appearing as top keywords with 

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negative sentiments. 
And while X is seeing a decline,

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Meta's Twitter clone threads 
hasn't been able to capitalize 

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on this opportunity either. 
Initially touted as a potential 

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Twitter killer, Threads has 
struggled to maintain user 

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engagement. 
Data shows that only about 10% 

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of X users have ever tried. 
Threads in its current user base

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is far from hitting any 
significant milestones, but 

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Threads reluctance to 
incorporate Real Time's news 

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into his platform has also 
Hanford its ability to engage 

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users. 
This could have been an 

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excellent opportunity for 
Threads to fill the void left by

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X, but Meta's hesitance to re 
enter the news arena has put a 

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damper on that possibility. 
And the decline of X and the 

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stagnation of Threads indicate a
significant shift in what users 

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are seeking from social media 
platforms. 

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And with the availability of 
alternative platforms like 

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Tiktok for entertainment and 
traditional online publishers 

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for news, XS Model seems to be 
losing its appeal. 

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One year into his ownership of 
X, Elon Musk is grappling with 

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the reality that the platform 
may not be the mass draw it was 

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once considered to be. 
And as Musk begins to charge for

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essential functions on X, the 
door may be opening for another 

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competitor to take the stage. 
However, the existing trend 

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suggests that the type of 
platform might not be what the 

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public really wants anymore. 
Now, thank you so much for 

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tuning into this episode of the 
Elon Musk Podcast today. 

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If you found this analysis 
useful, don't forget to hit the 

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subscriber the follow button on 
whatever podcast platform you're

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on right now. 
It's free, only takes a second, 

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and it helps us out 
tremendously. 

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And remember, each episode is 
about 10 minutes or less to help

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you get quickly caught up on all
things Musk. 

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And until the next episode, 
please take care of yourselves 

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and each other, and I'll see you
in the next one.