Twitter Is Favorable for Ads, Advertiser Spending on Rise
Twitter is an ad-friendly platform as advertisers’ ad spending is on the rise. The social network is also working to bring entertainment and political figures, payment services, and media outlets into partnership.
Twitter builds relationships to expand audiences
Twitter has a plan to expand its audience. The platform plans to focus on video, creator and commerce partnerships to revitalize businesses. This information was disclosed during an investor presentation by owner Elon Musk and new Chief Executive Linda Yaccarino that was reviewed by Reuters. The new CEO took office on June 5.
Yaccarino told Twitter investors on Thursday that the company is in early talks with political and entertainment figures, payment services, and news and media publishers about a possible partnership. The presentation was the first appeal of the new CEO to the company’s investors.
Twitter brought back advertisers
After Musk acquired Twitter in October 2022, some advertisers put a hold on ad spending. While the new owner was adjusting the work of the company, the advertisers decided to take a wait-and-see attitude. They began to return en masse to the platform in the spring of 2023, when Twitter became much more stable, after drastic measures to optimize its work.
Appointing a new CEO also helped a lot. Yaccarino previously served as head of publicity for Comcast-owned entertainment and news conglomerate NBCUniversal. This was a signal that Twitter would be aware and respectful of the needs of advertisers.
Advertisers increased ad spending by 40% YoY
Some ad-buying firms have advised their clients to suspend spending on Twitter ads after Musk acquired it. According to the information from the presentation, these recommendations have been canceled. At the moment, none of the major advertising holdings recommends taking a break. High-profile brands including Warner Bros, Mondelez, McDonald’s, and Walmart have resumed advertising on Twitter.
Yaccarino told investors that advertisers’ spending on ads is now on the rise. In particular, an increase of 40% or more compared to the previous year is observed in the categories like health, consumer packaged goods, and financial services, according to the source.
Twitter will offer digital payments
From the very beginning, Musk said that Twitter would be part of a larger app, the Everything App. It will be similar to the Chinese WeChat. He said he plans to offer digital payments and a variety of other services. One of the presentation slides showed that Twitter is applying for “money transmitter licenses” in all 50 US states.