What Does Elon Musk’s Twitter Purchase Mean for Advertisers?

Elon Musk Twitter

By now, we’re sure you’ve heard the news about Elon Musk’s Twitter purchase.

The $44B deal was finalized in late October, making Musk the sole owner and “Chief Twit,” as one new iteration of his Twitter bio read. Twitter, now a private company, has been in the spotlight as Musk reportedly let go of staff, promised to tackle Twitter’s “bot problem” and more.

The media world is buzzing about what all this means for users, advertisers, Twitter staff and everyone in between.

On October 27, Musk shared a “letter to advertisers,” stating Twitter would not become a content “free-for-all.”

Elon Musk Twitter

While some advertisers have been reassured by this gesture, others are already moving away from Twitter.

Despite Musk’s tweet, plans shared with investors indicate Musk is looking to move Twitter away from relying on advertising dollars and to create new sources of revenue. According to The New York Times, here are a few upcoming changes Musk is looking to implement.

Potential Twitter Changes

Needing Approval To Reinstate Banned Accounts

Twitter accounts previously banned from the platform won’t be reinstated without “council approval” and a policy in place.

Cutting Twitter’s Reliance on Advertising to Less Than 50% of Revenue

In 2020, Twitter’s revenue was 90% advertising revenue. Musk plans to cut this to 45% while expanding additional revenue sources like subscriptions and data licensing.

Having 104 Million Subscribers for a Mysterious New Project “X” by 2028

While this project remains under wraps, Musk hinted at a potential ad-free experience for paying subscribers. Many platforms are experimenting with paid subscription models, which can reward content creators and provide an elevated experience.

Making Blue Checks for Sale

Becoming verified on Twitter has long been a process reserved for celebrities, international brands and high-profile figures. Musk is proposing an $8/month subscription model, which would verify anyone willing to pay.

Evolving Content Moderation

While no changes to content moderation have been made just yet, Musk has proposed a few different oversight and advisory boards to potentially moderate content. He has made it clear to advertisers that content will continue to follow “the laws of the land.”

Elon Musk Twitter

So, now you’re wondering, what does this mean for my marketing?

“If you’re a brand, how much tolerance do you have for this uncertainty? Plan to be in a wait-and-see period for quite a few weeks, if not months,” said Amanda Martin, SVP, Corporate Development & Strategic Partnerships at Goodway Group. “However, if I were a CMO, I’d be seriously considering pausing my spend on Twitter until the dust settles.”

Here are a few other things you should do now.

4 Ways Your Brand Can Keep Up With Twitter

1. Keep an Eye on What’s Happening

If your brand has a Twitter presence, now isn’t the time to tune out and put it on autopilot. As the platform evolves, continue to evaluate how Twitter fits into your media mix.

2. Diversify Your Ad Spend and Stay Curious

Ultimately, social media platforms don’t “belong” to us. While we sometimes consider them “owned” media, things can change so quickly in the social media world. Algorithm, ownership and content moderation changes as well as cultural shifts mean social media is anything but stagnant. Stay up to date on what’s new, keep your eye on up-and-coming platforms and be sure to diversify your advertising.

3. Be Mindful of and Monitor Your Brand Sentiment

The Twitter platform has been changing rapidly since Musk’s acquisition and will continue to do so for a while. Monitor your brand’s sentiment across the web, notably on Twitter. Check your mentions frequently and take stock of how your competitors and peers are performing.

4. Continue To Build Your First-Party Data

First-party data is one of your business’s most valuable assets. Owning data that speaks to your customers and business goals keeps you ahead of the curve as cookies phase out.

Goodway Group will continually monitor Elon Musk’s Twitter evolution and share our insights along the way. The constantly changing media landscape is why you need a trusted advisor to help you navigate what’s best for you and your brand.