Twitter Reportedly Unveils Lucrative Plan To Win Back Fleeing Advertisers As Musk Begs People To Tweet More
Topline
Elon Musk’s tumultuous five-week tenure as Twitter CEO continued to take a strange path Thursday, with the world’s wealthiest man pleading for users to post more on the social media site as the firm reportedly dangled a lucrative offer to advertisers who drive a majority of the company’s revenue but have soured on Musk’s vision for Twitter.
Before Musk became CEO, advertising accounted for over 90% of Twitter’s revenues.
Here are some key facts
An email to advertiser subscribers was posted by the Advertisers Section. It stated that companies spending more than $500,000 for Twitter ads would receive a 100% match in marketing equivalent value of up to $1,000,000. Wall Street Journal.
It’s “the most aggressive ad spend incentive” ever, according to an internal message from a Twitter executive viewed by Platformer editor Zoe Schiffer, explaining it’s intended to “make it worth it to get any paused advertisers to reactivate.”
Musk is the one who made it happen. frequently braggedThere has been an increase of Twitter’s daily active users, posted Thursday afternoon, “If I may beg your indulgence, please add your voice to the public dialogue,” griping that he has met “so many people who read twitter every day, but almost never tweet.”
Important Background
Numerous prominent companies have announced they’ll no longer advertise on Twitter, including car companies like Ford and Audi and other giants like General Mills and Pfizer, while dozens of others have reportedly quietly stopped marketing on the site. Though Musk has brainstormed other revenue streams for Twitter, including a controversial revamp to the Twitter Blue monthly subscription service that briefly included paid verification checkmarks, but ads remains the core component of Twitter’s business: Ad revenue represented $1.08 billion of Twitter’s $1.18 billion total revenue in the second quarter of 2022, the last period where the company’s financial data is publicly available.
Tangent
Musk publicly sparred with Apple, the world’s largest company by market capitalization, this week, claiming the Silicon Valley titan “mostly stopped advertising” on the platform and “hate[s]
free speech,” an apparent reference to Twitter’s recent reinstatement of various previously banned accounts, including former President Donald Trump’s. Musk, who also accused Apple of considering banning Twitter from the App Store, quickly backtracked, saying there was no truth to his App Store allegation after a meeting with Apple CEO Tim Cook at Apple’s headquarters.
SME Valuation
According to our calculations, Musk is the richest person on the planet with $198.4 Billion. However, his net worth has fallen 38% from its peak of $320 billion in November. Much of his wealth is from his stake in electric vehicle maker Tesla, which Musk leads as CEO, and his decline in wealth can be traced to Tesla’s free-falling stock price as many investors fret about Twitter occupying too much of Musk’s time and resources.
Additional Reading
Musk Backtracks: Apple ‘Never Considered’ Pulling Twitter From App Store, Musk Says After Tim Cook Meeting (SME)
Musk Says Apple Cutting Twitter Ads—Here Are The Other Companies Rethinking Their Ties (SME)
