Glint Advertising delivers a bite-sized summary of Mark Zuckerberg’s name change decision and how it affects marketers.
Facebook founder Mark Zuckerberg prepares for the “next digital frontier” by announcing the renaming of his company to Meta in late October. Greek for “beyond,” Meta is based on the sci-fi term metaverse to describe operating in a virtual world. The name change is reportedly an attempt to unify brands, separate the company from negative scrutiny and prepare for future advancements.
“Today, we are seen as a social media company, but in our DNA we are a company that builds technology to connect people, and the metaverse is the next frontier just like social networking was when we got started,” said Zuckerberg.
According to the New York Times, Facebook and “sister” apps generate over $86 billion in revenue and serve more than 3.5 billion people worldwide.
Meta hopes to reach a billion people within ten years, with the help of other tech companies. But, will the change serve value to consumers, or is it a misguided attempt to dodge criticisms?
Like Google and Alphabet or Philip Morris and Altria, industry critics do not think the name change will help relieve PR stress; however, stock prices may rise. The lesson for marketers? Redirection is a powerful tool, especially when practicing crisis communications.
Other things to anticipate with the name change:
- Virtual-reality products are Meta, a shift from the name brand Oculus.
- Zuckerberg will not restructure the company, reportedly. To date, there are no executive changes.
- Tech companies working together are the metaverse reality, according to Zuckerberg’s vision.
According to insiders, the Meta name change is needed to redirect the company’s path forward.
- Facebook and Instagrams’s aging audience makes execs question its relevancy, according to an internal report published by Bloomberg.
- According to an NPR article, Zuckerberg wants to attract young adults, ranging from 18 to 28 years of age. TikTok is a formidable opponent, according to NPR.