Brands must consider several factors in deciding whether to continue advertising on Twitter, whose new owner has proven to be wildly unpredictable.
What’s Going On?
It’s been a wild ride since the world’s richest man, Elon Musk, surprised nearly everyone by completing his contentious purchase of the original microblogging platform, Twitter. For months Musk and the company battled over what was at first a hostile takeover but wound up as a forced marriage when Twitter’s board compelled him to follow through on a bid that paid investors nearly double the company’s current market cap.
Since taking the reins Oct. 27, Musk has created tremendous upheaval by firing several top executives at Twitter, announcing layoffs for more than half of the company’s 7,500-person workforce, and proposing dramatic changes to the platform’s moderation protocols that have heightened concerns over its role in the proliferation of misinformation, violence and hate speech. MIT reports Twitter has lost more than a million users since Musk took control.
As a consequence of all this volatility, scores of high-profile brands have reportedly chosen to stop advertising on the platform, including United Airlines, General Mills, Ford and General Motors. The NAACP called for all companies to pull their advertising, citing Twitter as nothing less than a threat to our democracy.
Why Does It Matter?
With Twitter attributing approximately 90 percent of its revenue to advertising income, clearly the company will be working hard to address the concerns of brands of all sizes that rely on the platform to reach their audiences.
Conversely, Twitter represents a relatively small amount – experts estimate approximately 4 percent – of U.S. ad spend. So while “the Blue Bird” does provide a fairly unique way to reach consumers given some of its features and content leanings, advertisers clearly have many other options.
What Should Brands Be Doing About It?
Like many in advertising, including global holding company Interpublic Group and leading media shop Havas, Luquire has been advising clients to consider pulling advertising from Twitter until the dust settles and brands can more reliably anticipate the ecosystem and user experience the platform will provide. There’s no upside right now in throwing money at a platform that has both users and advertisers jumping ship.
That said, brands that have an active organic presence on Twitter should take their cues by paying close attention to the reactions of their followers. Avoid posting any content related to the current state of affairs at Twitter – that only draws you into someone else’s controversy. And if your followers are abandoning the platform in droves – you’ll know if you see a significant drop in your own followers – consider slowing down your post frequency and revisit your overall social strategy.
This saga has a new twist seemingly every day, so follow the news closely and watch for cues from big brands for possible adjustments to your Twitter gameplan. And remember: one brand’s problem may be another brand’s opportunity, so as more advertisers avoid the platform, some marketers may double down on Twitter by taking advantage of lower costs and less competition. At least that’s what Elon hopes.