What influencers and advertisers should expect from Elon Musk's new X membership tiers

Elon Musk just announced on his social media platform X, which was once known as Twitter, that it will be launching two new premium subscription tiers. While the other, more expensive tier will offer an ad-free experience, the first tier will provide all functionality at a lesser cost but without any reduction in advertisements.

Two new tiers of X Premium subscriptions launching soon.

One is lower cost with all features, but no reduction in ads, and the other is more expensive, but has no ads.

— Elon Musk (@elonmusk) October 20, 2023

The change is occurring at the same time as X is starting to charge new users $1 for platform access in the Philippines and New Zealand, but specifics on these plans are still scarce. If a new user chooses not to subscribe, they will only be able to read posts, watch videos, and follow accounts with “read-only” access.

Elon Musk has long held the opinion that levying a fee on users is the best way to stop bots and fraudulent accounts on the network. Thu, in an effort to reward consumers, has been advocating for improved premium services, which are now known as X Premium. Additionally, he has been aggressively wooing X’s advertisers back with exclusive deals. One example of a monthly fee that some users have been paying is $8 for the blue-check subscription service.

Furthermore, in an effort to lessen spam, manipulation, and bot activity, X just unveiled its “Not A Bot” subscription option. Nevertheless, advertisers are removing their advertising from the platform as a result of Elon Musk’s abrupt changes in platform management, which include significant layoffs and the dissolution of content moderation teams. Musk admits that X’s earnings have suffered, but he places the blame on activists who put pressure on advertisers.

Advertisers may find opportunities, nevertheless, in the tier that offers full functionality together with ads. This option may offer a highly focused advertising platform that goes against Twitter’s initial concept, depending on the cost and subscriber count (X).

X must properly balance monetization with sustaining a user base large enough to justify advertising in order to draw in and keep sponsors.

This move demonstrates X’s attempts to diversify its sources of revenue as it faces competition from firms such as Bluesky and Meta’s Threads and has undergone extensive restructuring and rebranding since Elon Musk assumed control in October 2022.

What influencers should know about the new subscription tiers?

Following Mr. Musk’s announcement of X’s two new premium subscription tiers, a lot of conjecture has been raised over potential effects on the platform’s influencers and marketers. With this most recent development, it is evident that X is actively looking into new revenue sources and making an effort to deal with issues with revenue that have arisen as a result of modifications made under Musk’s direction.

The launch of premium memberships may present advantages as well as difficulties for influencers on X. The platform’s prior membership program, called X Premium, offered extra features along with revenue sharing and a blue checkmark for legitimacy, which encouraged users to pay. Influencers who participated in this program benefited greatly.

There are concerns over influencer marketing’s future raised by the two new subscription tiers. Although increasing the number of users on one tier can entice influencers to the platform, the possible decrease in ad revenue could have an impact on the ecosystem as a whole, including influencers.

Nonetheless, X may create a more engaged user base if it can boost its subscription base by advertising its premium services. As a result, influencers would have a greater platform to interact with their audience. This could lead to a shift in the manner in which influencers and advertisers collaborate.

For advertisers

Under Musk’s leadership, the connection between advertisers and X has become more complex. Severe actions like disbanding content moderation and eliminating trust and safety teams have resulted in a considerable decline in the platform’s advertising revenue. Musk wants to entice back advertisers with discounts and special offers as they grow warier.

Although an ad-free experience is promised by one of the new premium subscription tiers, there is a clear hurdle for marketers in this situation. The number of people who choose the ad-free version may decrease.

Author

Samson Ayodeji

I am literally obsessed with technology. I love writing about the latest news in technology in different markets, segments and sectors across the world.

View all posts

Author

X(Twitter) set to eliminate its circle feature from October 31st

Apple Makes an Exception, Allows Twitter Overrun Unwritten Rule

Mark Zuckerberg cancels cage fight with Elon Musk