As a result of concerns over Elon Musk content review policy, many advertisers have scaled back their advertising efforts on Twitter since he arrived as CEO, in a move that hopes to change the tide after Elon Musk’s arrival.
In an email to media agencies, Twitter announced that it will launch its “largest advertiser incentive program in history” in December, rewarding advertisers with additional exposure if they reach a certain level of advertising investment.
An email was sent out to Twitter advertisers with the message that a matching bonus would be given to advertisers who spend between $500K and $1M on Twitter. There will be half a bonus available for advertisers who spend $350,000 – this is half of the exposure they have already purchased. An advertiser who spends at least $200,000 will be entitled to a bonus on a quarterly basis.
In an email that Twitter sent to another ad agency, the same deal was offered for U.S. brands, while a slightly modified deal was offered for brands in the U.K. and other parts of the world.
In October, Elon Musk completed the acquisition of Twitter for a total of $44 billion. It is also important to note that his subsequent actions have alienated major brands and advertising agencies, including loosening content audits, reinstating offending accounts and laying off half of the company’s workforce (including a large number of sales representatives).
Several advertisers have stopped running ads on Twitter, including United Airlines, General Motors, and Omnicom Media, while advertising agencies such as Interpublic Group and Omnicom Media have recommended that clients stop running ads on Twitter. This has caused Twitter’s $5 billion business to suffer.
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Elon Musk has saddled Twitter with a $13 billion debt, with an interest rate of up to $1 billion per year, as a part of the acquisition process.
A recent email indicates that Twitter’s current promotional offer will run until the end of December, and that Twitter is inviting major brands and advertising agencies to contact them by phone in order to discuss the offer.
At this time, Twitter has not commented on the matter.
Elon Musk has even personally called the CEOs of companies who have cut back on their advertising budgets on the Twitter platform in order to reprimand them for doing so. Taking an example, Elon Musk publicly scolded Apple CEO Tim Cook on Monday, one of Twitter’s biggest advertisers, for cutting back on Twitter’s ad budget in response to the company’s inability to make money.
Twitter’s advertising team has shrunk so much that many agencies and brands can no longer even find a counterpart in Twitter’s advertising team after several rounds of layoffs and departures, people familiar with the matter said. The Twitter advertising system has also been accused of becoming too laggy and difficult to use during Elon Musk’s changes, which have also led to complaints.
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There are people who are familiar with this matter who say that regardless of Twitter’s generous promotion, some brands were not impressed by it. It was said by an executive at an advertising agency that the move “will not affect the decisions of advertisers.”.
According to one agency executive, “I don’t believe any client will want to risk taking on that kind of risk. It reminds me of the guy who played the violin on the Titanic.”
