Elon Musk offers free advertising to win back companies that have abandoned Twitter
Elon Musk seems desperate to revive the Twitter business. So much so that the social network is online. It offered free advertising to try to win back brands that advertised on the platform and decided to abandon their investment plans after the takeover of the controversial tech mogul.
< p>The company is reportedly offering free ad space on Twitter, promising to match advertisers' ad spend up to $250,000. like this he advanced it The economic newspaper 'Wall Street Journal', which had access to internal emails in which that plan was discussed, said on Friday. “The total of 500,000 dollars in advertising must be executed before February 28,” said that information.
Recently, Twitter already promised The advertisers who returned to the platform were awarded $500,000 in free ads as long as they spent at least half a million dollars. This is the period of the year during which they earn the most revenue.
This Twitter incentive responds to the financial need to attract brands to wind up a advertising businessSo it has deteriorated since Musk bought the company. He sold the platform for $44 billion. And it is that the introduction of controversial changes in the social network —since the return of extreme right-wing accounts or the permissiveness with disinformation about the covid until putting the blue verification mark for sale— has driven away its major advertisers. They seek to promote themselves in safe spaces and the measures introduced by Musk mean that they no longer see Twitter as a space to advertise.
More than 75 of the top 100 advertisers on Twitter before the Musk's arrival have not invested in the platform during the first week of 2023, according to data from Sensor Tower. Among the big brands that have paralyzed their advertising plans on Twitter are General Motors, Pfizer, United Airlines and Volkswagen.
At the end of November, 'Platformer' pointed out that it was a major brand. In Europe, the Middle East, and Asia, Twitter's ad revenue had fallen by as much as 15%, which equates to a loss of about $16 million.
Advertising revenue is the main driver of Twitter's business. Almost 90% of Twitter's revenue in 2021 (4.500 of the 5,000 million dollars) come from advertising. Recovering what was lost is therefore essential for their survival.