Rebranding and Changing Value Prop Requires Good Price Management

https://www.wsj.com/articles/elon-musks-rebranded-twitter-cuts-ad-prices-d2615d8f

Rebranding of Twitter to X signaled a few things that clearly leads customers to rethink the value of what they’re buying and thus drive the business to reevaluate the price their offerings can command.

1. The industry continues to be transforming from a competitive landscape where users (eyes) have more options. No one platform for communication can provide the sole information and entertainment for people. As new content hosts pop up, the new features will draw audiences away thus reducing the value proposition. While supply (ad space) stay relatively the same, price will have to give way to preserve erosion
2. A brand is a promise. A promise for what the customer can count on experiencing. Therefore, changing the brand name requires customers to rethink what they should expect. For Twitter, the X name change and a firebrand leader clearly made way for customers to reevaluate the value of advertising