Twitter failed in its attempts to woo advertisers
new York Times, by Ryan Mack, Mike Isaacs and Kate Conger, p. 10
There world Cup Twitter has always been a boon for Twitter, with record traffic and an influx of advertising dollars. But this time, when the world football tournament begins on November 20, advertising revenue Twitter In the US they were 80% below domestic expectations for that week, said three people familiar with the data. In addition, Twitter sharply cut its revenue estimates. Earlier, the company projected to generate $1.4 billion in the last three months of the year, down from $1.6 billion a year earlier due to the global economic crisis. But as Twitter continued to miss its weekly advertising targets, that figure dropped to $1.3 billion, then $1.1 billion, the two people said. ELON muskTwitter’s new owner has repeatedly warned that his social media company is in serious financial trouble. Interviews with seven former employees and internal documents seen by The New York Times offer a more complete picture of Twitter’s financial woes. Many of the company’s problems can be traced back to Musk’s takeover in late October. Since then, advertisers – who provide 90% of Twitter’s revenue – have suspended some spending on the platform, citing concerns about how Musk might change the service. The billionaire, a self-described “free speech absolutist,” restored banned accounts and dropped at least one misinformation policy.
Researchers have found that the trend of hate speech on Twitter has skyrocketed in recent weeks. Musk has alternated them with attacking advertisers. Last month it threatened “thermonuclear name and shame” of brands that capped their Twitter spending. Last week, he briefly fell out with Apple, which spent more than $180 million on Twitter advertising this year, according to three people. Twitter’s advertising business has become so problematic that it has started offering additional incentives to brands. Some brands commit to promoting only at events, such as Very good bowl, according to internal documents and three people familiar with the effort, with huge exemptions or clauses that allow them to back out for any reason. Automakers are among the most concerned advertisers, with General Motors raising questions over Musk’s sharing of Twitter data with automaker Tesla. “There’s been no level of trust in us on Twitter, especially after whipping them over the last four weeks,” he said. Ellie bamford, Head of Global Media at R/GA, a creative agency. last month, IPG, R/GA’s parent company and one of the world’s largest advertising companies, has recommended that its customers stop advertising on Twitter. Musk did not respond to a request for comment. Even before it closed its Twitter deal, advertisers began voicing their doubts.
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