Some spicy revelations about Apple, Elon Musk and advertising on Twitter
Elon Musk is a hot ass, so to speak. His take on Twitter certainly cost him on a personal level, to the point that some wonder if a possible fall wouldn’t send Tesla into a whirlwind of failure.
But the 44 billion operation is above all expensive for the company itself: Twitter is now burdened with debt and its large interests, which are particularly difficult to imagine without rapid growth in the platform’s revenue.
And they depend, in large part, on its advertising revenue. However, as has been widely explained everywhere since Musk came to the helm, his volatile and brutal attitude, his massive and poorly targeted layoffs and, above all, his philosophical that impudence regarding the moderation of comments made on the platform has largely fled from the largest advertisers, afraid to associate the image of their brands with a place where the hate speech or the conspirators are no longer restrained by anything.
When Twitter reopened the door to amplified conspirators, the company decided to end its policy of combating disinformation on Covid (effective from November 23).
— Olivier Tesquet (@oliviertesquet) November 29, 2022
If most of these maneuvers are taking place behind the scenes, a psychodrama is very much revealed by Elon Musk himself, who entered a crusade against Apple.
According to him, Tim Cook’s firm, which is one of the advertisers who temporarily stopped their advertising investments on Twitter, “Against freedom of speech”. Worse, Apple threatened to remove Twitter from its AppStore: an intolerable one casus belli which the boss of Tesla or SpaceX seeks to live by tweets, as usual.
Most of Apple has stopped advertising on Twitter. Do they hate free speech in America?
— Elon Musk (@elonmusk) November 28, 2022
After threatening to launch his own phone, which made many observers laugh, after waging war against the 30% commission that Apple took on transactions going through its services, like many others before him, the However, things was back to normal after a meeting with Tim Cook, who gave him a tour of the owner.
Thank you @tim_cook for taking me to the beautiful HQ of Apple pic.twitter.com/xjo4g306gR
— Elon Musk (@elonmusk) November 30, 2022
Who, too, has to explain to him two or three things as basic as they are important that, with all the wisdom that he does not often show, he probably does not know about the advertising of big brands on the Internet .
As the New York Times and Ars Technica recount, Apple’s halting of Twitter advertising orders has nothing to do with intimidation or an all-out attack on “free speech” Musk loves
The decision was actually made following a deadly shooting at a gay nightclub in Colorado Springs and part of “business as usual” of a large firm that wants to control its brand image at all costs: Apple just doesn’t want to see its name associated in any way with a mass murder.
Moments later, after directly thanking Apple for giving back to its customers, Elon Musk shared another tweet praising advertisers for their return to Twitter – like Apple, Amazon in particular has promised large campaigns, order of 100 million dollars a year.
Just a note to thank advertisers for coming back to Twitter
— Elon Musk (@elonmusk) December 4, 2022
What has changed for brands, or at least some of them, to continue their advertising investments on a platform that, however, risks slipping into the most complete breach?
Not really a love of absolutist freedom of speech, nor a financial acknowledgment of Elon Musk’s genius, rather a very good deal for them: according to the New York Times, the new owner offered them with financial conditions that are impossible to refuse. their upcoming campaigns, and which platform looks like the rug dealer’s somewhat desperate methods.
The ad is sold on Twitter, and Musk offers a massive 50% discount, or rather a 100% bonus: according to the New York daily, the platform offers in December to double the number of ad impressions purchased for any campaign between $500,000 and $1 million. Bonuses of 25-50% are offered for lower spends, $200,000 and $350,000 respectively.
The reason for these extraordinary offers is, quite simply, an extraordinary loophole: according to the New York Times, the revenue forecast for the World Cup period, which should constitute a lifeline for a company that is under throat, is 80% below the forecast.
At the end of October, the platform lost 1,500 advertisers in total – including some behemoths like Apple, for the reasons explained above. Therefore, sales forecasts were constantly revised down by the teams in charge, dropping within a few weeks from 1.4 to 1.1 billion dollars for the last months of the year.
In other words: the panic is palpable and the platform continues to be in serious danger. This is all the more true because Musk’s plan to charge 8 dollars per month to users who want to benefit from the small certification badge is, ultimately, still in limbo: it is, a priori, the source of the most direct income that the new boss thought.