Why did Facebook rebrand? 3 lessons if you’re looking to scale up in 2022
Scaling up in a competitive industry? Here are the key insights any high-growth business can learn from Facebook’s rebrand, even if you’re not a tech titan.
When Facebook rebranded and changed its name to Meta last October, it was worldwide news.
With Facebook being one of the world’s biggest and most influential actors in the digital economy, their name change was part of a significant rebrand.
This move is Facebook’s bold attempt to claim ownership of the metaverse, an upcoming 3D version of the internet all big tech companies are currently developing.
According to CEO Mark Zuckerberg, “the metaverse will feel like a hybrid of today’s online social experiences, sometimes expanded into three dimensions or projected into the physical world”.
This bold rebrand reflects a major shift in the company’s growth strategy and gives a hint of a number of highly innovative new products that will come to life in the near future.
This shows what a powerful strategy rebranding can be to convey ambitious expansion plans.
If you are running a growing business what are the three lessons we can learn from Facebook’s rebranding?
Lesson 1: Don’t let your current brand hold back your growth plans
We all know that your brand is at the forefront of your business. Facebook knows this better than anyone else, and this is why they are one of the most instantly recognisable brands in the world.
One of the fundamental reasons why Facebook rebranded was to communicate their expansion into new areas of the digital economy. But it’s worth noticing that the Facebook rebrand took place well before any new product or service launch.
The problem that Facebook faced, is that their company’s name is also the name of the social media platform which has been their main product until now.
It was vital to change their public perception before launching anything that’s too different from what they are known for.
As they expand into the virtual reality market, Facebook can’t afford to be only seen as a social networking platform.
Your brand needs to enhance your vision, not restrict it. When your vision expands, your brand needs to reflect that change.
As Zuckerberg rightly said himself at the unveiling of the new Meta name: “Right now, our brand is so tightly linked to one product that it can’t possibly represent everything that we’re doing today, let alone in the future.”
Facebook’s growth plans go well beyond what we had come to expect from Facebook until now.
How you’re perceived has a massive impact on how people will judge your growth potential. This is ever more relevant for SMEs, as they don’t have the huge marketing budgets that companies like Facebook have.
Is your current brand aligned with your future plans? If not, it’s probably holding you back.
Your brand is how you articulate your vision and share it with the world. When your vision expands, your brand message needs to expand as well.
It needs to enhance your vision, not restrict it.
Lesson 2: Rebranding enables you to take ownership of a new space within your industry
Facebook’s rebrand is part of a strategy to claim ownership of an entirely new space within the digital market before their main competitors.
Facebook is a very accomplished figure in the tech industry, but they are now moving into a space where they have not yet established themselves as a leader.
And by rebranding to Meta, the company is putting itself at the very heart of the future of immersive social experiences.
Zuckerberg told Verge, “For us, it was never just about social media, and increasingly we’re moving beyond that...[The brand] felt increasingly like it didn’t encompass everything that we were doing. So we wanted to shift to have something that is more evocative of the vision that we’re moving towards.”
Meta’s plans for growth are expansive. Zuckerberg said that he expects the metaverse to reach a billion people within the next decade. By taking the initiative to identify as a Metaverse company well ahead of its competitors, Meta is showing that it is at the forefront of this competitive industry.
Rebranding is a way to take ownership of an entire space within your industry.
This is a very smart move that many business owners can learn from. Claiming a specific space within your industry through your brand, gives you instant authority, leadership and visibility.
What kind of space do you currently own within your industry? Does your brand reflect this, and isn’t it a big opportunity you could be the first to claim?
In order to take ownership of a new space, you have to clearly define your brand.
When you rebrand, you make a strong statement of your relevance in a new market. You show the world you mean business.
Lesson 3: Rebranding enables you to stay ahead of the competition
Facebook’s rebranding to own the metaverse is also motivated by huge competitive pressure. They wanted to be the very first brand that the general public associates with the metaverse concept.
Let’s not forget how fierce the competition is between tech companies and how quickly one can lose its leadership position. Remember Bebo, the 2005 social media platform that was once seen as miles better than Facebook?
Facebook is not the only company making a bid to be the leader of the Metaverse. Forbes reports that Live Maps, Niantic, Magic Leap, Microsoft and many others are working on the metaverse too.
When you need to stay ahead of the competition, differentiation is key.
Moreover, the Metaverse is set to be a huge and profitable market. According to the Nasdaq Stock Exchange, the global VR market could hit a valuation of nearly $185 billion by 2026.
With so many big players competing to become the leader in the Metaverse’s space, Facebook wants their name to be the first that people associate with the idea of Metaverse.
To extend their reach far beyond social media, Meta positions themselves as the leader in the Metaverse field.
While other key players won’t necessarily be associated with the Metaverse, Facebook will, thanks to its rebranding to Meta.
Do your clients see you as an industry leader?
It’s important to note that when you want to stand out from competitors, differentiation is key. How your clients perceive you is important for growth.
When you differentiate yourself through your brand, clients can clearly see your authority and relevance within your industry, enabling you to stay well ahead of the competition.
You don’t have to be Facebook to benefit from rebranding.
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