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Many advertisers still using Twitter despite Musk’s chaos
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Constantine von Hoffman on November 16, 2022 at 1:45 pm | Reading time: 5 minutes
Elon Musk’s purchase of Twitter caused the biggest brands to pause their advertising on the social media platform. However, many smaller ones remain and are still glad to be there. Kaela Green, VP of paid social at Basis Technologies, says that’s because both the audience and the content protections are still there.
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“The reality of where it stands is there have been no changes to content moderation policies,” she says. “There have been no changes to brand safety, to the algorithms and tools that control and monitor, and make sure that the inventory maintains currency.”
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“The engagement rates that we’re seeing … have maintained pretty steady and in some cases it’s even increased and not necessarily in a negative way,” says Green. “The engagement is not due to some of the negativity or concern around the platform.”
The stability of audience size and engagement may be Twitter’s biggest strength right now. Another is that it occupies a unique place. Although some users talk about going to another platform — like Mastodon, neither that nor any other social media platform provides the immediacy and real-time response Twitter does.
“Sure, advertisers can pull away,” says Green, “but [they] are never going to want to if they’re still getting what they want out of the deal.”
However, even if all the advertisers returned today it wouldn’t fix the company’s core problem: It doesn’t make money. Twitter has turned a profit only twice in the last 10 years.
Musk has made that harder to do. Last April, when he agreed to buy the company, the market was hot. He paid $44 billion, twice its market value at a time when social media stocks were overvalued. Since the amount being spent on digital advertising has fallen off a cliff. If Twitter somehow brought in as much money as it did last year, it wouldn’t be nearly enough to service the debt Musk has saddled it with.
https://martech.org/many-advertisers...e-musks-chaos/
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Constantine von Hoffman on November 16, 2022 at 1:45 pm | Reading time: 5 minutes
Elon Musk’s purchase of Twitter caused the biggest brands to pause their advertising on the social media platform. However, many smaller ones remain and are still glad to be there. Kaela Green, VP of paid social at Basis Technologies, says that’s because both the audience and the content protections are still there.
...
“The reality of where it stands is there have been no changes to content moderation policies,” she says. “There have been no changes to brand safety, to the algorithms and tools that control and monitor, and make sure that the inventory maintains currency.”
...
“The engagement rates that we’re seeing … have maintained pretty steady and in some cases it’s even increased and not necessarily in a negative way,” says Green. “The engagement is not due to some of the negativity or concern around the platform.”
The stability of audience size and engagement may be Twitter’s biggest strength right now. Another is that it occupies a unique place. Although some users talk about going to another platform — like Mastodon, neither that nor any other social media platform provides the immediacy and real-time response Twitter does.
“Sure, advertisers can pull away,” says Green, “but [they] are never going to want to if they’re still getting what they want out of the deal.”
However, even if all the advertisers returned today it wouldn’t fix the company’s core problem: It doesn’t make money. Twitter has turned a profit only twice in the last 10 years.
Musk has made that harder to do. Last April, when he agreed to buy the company, the market was hot. He paid $44 billion, twice its market value at a time when social media stocks were overvalued. Since the amount being spent on digital advertising has fallen off a cliff. If Twitter somehow brought in as much money as it did last year, it wouldn’t be nearly enough to service the debt Musk has saddled it with.
https://martech.org/many-advertisers...e-musks-chaos/
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