in the first week new owner of twitter Billionaire Elon Musk, who caused shock waves with his plans to reduce controls in the name of freedom of expression, received two good news about the financial performance and value of his newly acquired brand.
The value of the Twitter brand rose 85% this year to $5.7 billion, even before the takeover attempt, according to an annual report on the value and power of media brands released by global consultancy Brand Finance.
On Thursday 28th, Twitter announced its results for the first quarter of 2022, reporting seven times higher profits than the same period in 2021.
Twitter Brand Value May Grow Even More With Elon Musk
Twitter’s assessment is part of its annual Brand Finance Media 50 ranking, which lists the 50 most valuable and most powerful brands in the world’s media industry.
The value of global brands is not just about financial results. In the eyes of consumers, suppliers, employees and investors, profitability is determined by a number of factors including growth potential and risks.
Ranking 26th in the ranking, Twitter is still far from the leader Google, which is worth $263.4 billion. But he jumped 10 positions, a significant advance.
The huge increase in Twitter’s brand valuation this year by Brand Finance has been attributed to the social network’s strength among its largest users, who are extremely talented opinion leaders.
The strength of Twitter for consulting against the market confirms Musk’s thesis that significant revenue improvements are possible by leveraging the platform’s reputation capital.
The purchase still needs to be approved by regulatory agencies, but The businessman has already waved to the changes in the social network.
They were met with reservations by those who feared the spread of hate speech or misinformation, but were greeted with sympathy by investors.
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Twitter grew revenue and profit
Even before the changes, Elon Musk can hardly complain about the management that brought the company to this point. In the first quarter of this year, Twitter reported net income of $513,2 million – seven times more than in the same period in 2021.
Revenue was $1.2 billion, up 15.9% from the first quarter of last year. The social network gained 12 million new users in the period, the biggest increase since the peak of the pandemic.
As the sale to Musk continues, Twitter has withdrawn all future targets and forecasts as the delisting will change the platform’s business model.
Twitter is growing, but Google still dominates brand equity
In its report, which announced the most valuable media brands of 2022, Brand Finance draws attention to the dominance of technology companies, which surpassed cinema, TV series and entertainment giants.
Despite Twitter’s impressive growth, Elon Musk’s social network hasn’t even come close to shaking the Google empire, whose value has grown by 38%.
The report notes that the company relied on ads for the lion’s share of revenue and was crippled early in the pandemic as advertising spending fell due to uncertainty.
However, as the world adjusts to the new normal and people spend more time online, advertising budgets have opened up and Google’s business has rebounded, resulting in a massive increase in brand value.
Facebook ranks second with $101.2 billion, up 24% in brand value.
While Twitter isn’t in the top 10, the future of Twitter is good for Brand Finance.
The consultancy’s report states that “highly educated opinion leaders” are responsible for increasing Twitter’s most important users and thus brand value.
“Musk’s interest in Twitter and the billions of dollars he’s willing to invest in it are largely a result of the strength of his brand,” said Richard Haigh, director of Brand Finance.
“Likewise, despite the controversy over the acquisition, Musk’s personal brand could be beneficial to Twitter.
In an attention-based economy, closely aligning the Twitter and Musk brands can be mutually beneficial.”
With some celebrities deciding to stop tweeting or shut down accounts, rehearsals have begun to take place in the move of influential people to leave Twitter.
But with the social network’s influence among journalists, politicians and people of great interest in society, it’s hard to predict how far this movement will go as there is no alternative with a similar profile.
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In addition to calculating brand equity, Brand Finance also determines the relative strength of brands through a set of metrics that measure marketing investment, shareholder equity and business performance – the Brand Strength Index (BSI).
Chinese messaging app WeChat was the fastest growing in this index, climbing from 93.3 to 100, and was recognized as the world’s strongest media brand with an AAA+ rating.
However, the consultancy’s report highlights that the brand’s value fell 8% to $62.3 billion.
New TikTok is coming to Brand Finance’s Media 50 2022 list. With the app’s growing popularity among teens and content monetization for creators, the platform’s brand value increased by 215% to $59 billion.
The debut of the social network directly rose to fourth place in the list.
Netflix ranks eighth with a brand value increase of 18% ($29.4 billion), followed by YouTube with a brand value of 38% ($23.9 billion).
Full work can be seen here.
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source: Noticias
