Elon Musk’s radical changes hit X ads reach in Kenya

SpaceX, Twitter and electric car maker Tesla chief executive Elon Musk. 

Photo credit: File Photo | AFP

That X (formerly Twitter) is the only social media platform whose potential advertising reach in Kenya declined during the full year to December as peer channels expanded their range has shone a spotlight on the biting aftermath of radical policy and operational changes billionaire Elon Musk has effected since he took over ownership of the popular platform.

The Digital 2024 Report for Kenya published by global digital insights platform Datareportal shows that the potential audience that Kenyan marketers can reach with ads on X declined by 26,000, or 1.4 percent, with analysts who spoke to the Business Daily heaping blame on the new management and ownership, terming it a disruptor.

The deteriorated performance by X happened during a year that the ad reach of rival platforms rose significantly, with some hitting as high as a 41.1 percent jump year-on-year in the case of Meta-owned Facebook.

Others, including Instagram, Snapchat, LinkedIn, Messenger, and YouTube, increased their reach during the review period by 38.6 percent, 29 percent, 22.9 percent, 18 percent, and 3.7 percent, respectively.

As of the close of December, the total potential reach of ads on X stood at 1.87 million, or about 8.2 percent of Kenya’s total Internet users.

The potential reach was made up of 25.4 percent female users, while 74.6 percent were male account owners.

Analysts have pointed to several factors, unique to the platform, for its shrinking reach, among them the heavy reliance on the text format as opposed to other platforms, which incorporate more engaging multimedia content that resonates better with younger audiences.

“X has also undergone numerous changes in its algorithm and overall strategy, particularly under the new ownership and management. Such shifts can disrupt user experience and advertiser confidence, leading to reduced engagement,” says Barrack Onyango, brand strategist and founder of marketing firm Sparks Corporates.

His view is shared by digital marketing strategist Egline Samoei, who says the rapid changes, principally the introduction of paid checkmarks, have led to a mass exodus of users from X, reducing the audience reach for marketers.

“The decline of advertising reach on X is a result of changes that have occurred since Elon Musk took over ownership. He, for example, reinstated some accounts that had been suspended in the spirit of free speech, leaving brands in fear for their safety,” says Ms Samoei.

“Also, features such as the gold checkmark on the app became relatively expensive for brands, resulting in them toning down investments in marketing on X.”

The developments in the marketing ecosystem on X come at a time when Kenya’s annual digital advertising spending rose 8.8 percent year-on-year to hit a high of $108.4 million (Sh14.6 billion at current exchange rates), which was 24.6 percent of all advertising budgets by brands during the year.

In the digital advertising’s share of the marketing budgets, online influencers bagged $1.85 million (Sh248.8 million), while digital video ads scooped $29.74 million (Sh4 billion), and digital banner ads made an annual total of $26.77 million (Sh3.6 billion).

Others were digital audio ads ($1.63 million/Sh219.2 million), online search ads ($17.28 million/Sh2.3 billion), and online classifieds ($11.72 million/Sh1.6 billion).

According to Mr Onyango, the numbers, coupled with X’s performance, should serve as a wake-up call for brand promoters to diversify their scope.

“Marketers who have heavily relied on X as their principal base need to diversify their strategies. With the platform’s decreased reach, the return on investment might not be as robust as before, and this should prompt them to shift to platforms that are showing growth and greater engagement,” he advises.

“For X itself as a brand, this downturn is an alert to re-assess its strategies within the Kenyan market and possibly in other markets with similar traits.

“It must innovate, not just in advertising offerings but also in enhancing user engagement and relevance, especially in the wake of platforms that continuously evolve to capture users’ imaginations.”

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