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Twitter Inc. is adopting a new strategy to attract advertisers to return to the social media network, which has seen its ad income decrease since Elon Musk’s $44 billion takeover.
According to emails from The Wall Street Journal, the internet giant is dangling free ad space by promising to match advertisers’ ad spending up to $250,000. According to the emails, the entire $500,000 in advertisements must run by February 28.
Twitter did not react to a comment request.
The incentives are the company’s attempt to attract marketers to spend money on its platform. Twitter, for example, recently gave businesses $500,000 in free advertising provided they spent at least $500,000.
According to ad buyers, the incentive might be used to purchase promoted tweets during Super Bowl week, a vital selling season for Twitter. Advertisers have used to Twitter in recent years to create buzz around their big-game marketing endeavors. According to the Journal, the Super Bowl is Twitter’s most profitable day of the year.
Twitter is under enormous financial pressure to entice back the numerous advertisers who have stopped spending since Mr. Musk purchased the company in late October. Advertisers departed mostly due to concerns about Mr. Musk’s approach to content moderation and the risk that their advertising will appear near-problematic content.
Mr. Musk indicated in November that Twitter had witnessed a “dramatic decrease in revenue” and was losing $4 million per day.
Many major corporations, including Pfizer Inc., United Airlines Holdings Inc., General Motors Co., and Volkswagen AG, have reduced their spending on Twitter. According to a study of Sensor Tower data, more than 75 of Twitter’s top 100 ad spenders before Mr. Musk’s takeover were not advertising on the site as of January 8.
It is critical to persuade marketers to return to Twitter. Ads contributed over 90% of Twitter’s $5.1 billion revenue in 2021.
To be eligible for the latest incentive, a company must use particular Twitter products, such as its recently announced keyword-avoidance tool, which allows advertisers to compile a list of up to 1,000 terms and avoid having their adverts appear above or below tweets containing those words.
Mr. Musk announced last month that he expects Twitter to achieve a cash-flow break-even point in 2023. However, he has already threatened bankruptcy.
Mr. Musk indicated that Twitter was on track to have a negative cash flow of $3 billion per year before reducing spending, which included thousands of job cutbacks. He stated that the staff was approximately 2,000 persons, as opposed to approximately 8,000 earlier.
Twitter is closing many of its international offices
Elon Musk is closing multiple global Twitter operations as he works to cut expenses and find ways for the firm to make money.
According to two insiders familiar with the company and texts obtained by Insider, at least a dozen international offices are closed or in the process of closing, with several more in the United States slated to close in the coming weeks. The closures are also expected to result in a few hundred additional Twitter employees losing their jobs, on top of the hundreds who have already been laid off, fired, or opted to resign since Musk took over Twitter a little over two months ago.
According to sources acquainted with the issue, certain offices are closing, including those in Hong Kong, the Philippines, Mexico, and Africa, where all Twitter employees were laid off in November. Furthermore, facilities in Australia, South Korea, and the majority of offices in Europe and India are shuttered or expected to close in the next weeks, according to persons familiar with the issue who asked not to be identified because they were discussing business matters.
According to Platformer reporter Casey Newton, a big office in Singapore, Twitter’s Asian headquarters, is also closing as of Wednesday due to non-payment of rent. The landlord of the building in Singapore, where Twitter is based, could not be reached for comment. According to one insider, some other offices are also closing since Twitter has yet to pay their rent.
According to one insider, Musk paid the past-due rent for the Singapore headquarters late Wednesday evening Pacific Time. CapitaLand, a large Asian landlord and real estate holding business, owns the property. Furthermore, staff who were forced to leave the office during the workday due to Twitter’s eviction have been told to return, according to a source acquainted with the issue.
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Twitter used to have more than a dozen overseas offices in major cities worldwide, including Paris, Madrid, Berlin, Ghana, Manila, Mumbai, Bangalore, and Jakarta, as well as roughly 20 facilities in the United States. However, according to one source familiar with the subject, the company is now considering limiting its operations to a few important areas in the United States, such as San Francisco, New York, and Los Angeles, as well as globally in London, Tokyo, and Dublin.
Twitter did not respond to an email requesting comment.
Twitter’s most recent office opening occurred in Ghana in 2021, marking the company’s first official presence in Africa.