Thursday, November 17, 2022

Twitter - Risk and Potential for Marketers

Twitter – Risk and Potential for Digital Marketers

With Elon Musk’s acquisition of Twitter for $44B last month, the tumultuous first few weeks have brought significant layoffs, exits of senior leadership, and an increase in hate speech on the platform. Twitter users are threatening to depart to legacy platforms (e.g., Tumblr) as well as try new entrants (e.g., Mastadon). The volatility of the platform is certainly raising alarms for brands and digital marketers to proceed with caution. If Twitter continues this downward spiral, it’s likely that more advertisers will withdraw investments in the platform. 

 

However, with Musk’s original intent to minimize the allegedly rampant bot presence on Twitter, there could be a sliver of hope for marketers if the company can stabilize. Reducing bots and potentially improving ad targeting would make Twitter a more viable platform for marketers to generate the meaningful conversion rates. 

 

Even still, with Musk opening new revenue streams through subscription, Twitter Blue for users to pay a monthly fee for a blue checkmark, it’s possible that Twitter differentiates away from ad revenue. This could reduce the focus on improving the ad targeting capabilities for marketers as the firm seeks to grow through delivering additional value to subscribers.

 

As for now, it will likely be a wait and see approach for marketers as Musk attempts to stabilize both employees and users in the coming weeks and months.

 

https://www.reuters.com/markets/deals/elon-musk-completes-44-bln-acquisition-twitter-2022-10-28/

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