Elon Musk Hates Ads. Twitter Needs Them. That May Be a Problem. - The New York Times - 0 views
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Since he started pursuing his $44 billion purchase of Twitter — and for years before that — the world’s richest man has made clear that advertising is not a priority.
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They have cited a litany of complaints, including that the company cannot target ads nearly as well as competitors like Facebook, Google and Amazon.
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Now, numerous advertising executives say they’re willing to move their money elsewhere, especially if Mr. Musk eliminates the safeguards that allowed Twitter to remove racist rants and conspiracy theories.
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“At the end of the day, it’s not the brands who need to be concerned, because they’ll just spend their budgets elsewhere — it’s Twitter that needs to be concerned,” said David Jones
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On Wednesday night, at Twitter’s annual NewFronts presentation for advertisers at Pier 17 in New York, company representatives stressed Twitter’s value for marketers: as a top destination for people to gather and discuss major cultural moments like sporting events or the Met Gala, increasingly through video posts.
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Twitter differs from Facebook, whose millions of small and midsize advertisers generate the bulk of the company’s revenue and depend on its enormous size and targeting abilities to reach customers. Twitter’s clientele is heavily weighted with large, mainstream companies, which tend to be wary of their ads appearing alongside problematic content.
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Twitter earns the vast majority of its ad revenue from brand awareness campaigns, whose effectiveness is much harder to evaluate than ads that target users based on their interests or that push for a direct response, such as clicking through to a website.
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Twitter’s reach is also narrower than many rivals, with 229 million users who see ads, compared with 830 million users on LinkedIn and 1.96 billion daily users on Facebook.
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“Even the likes of LinkedIn have eclipsed the ability for us to target consumers beyond what Twitter is providing,” he said. “We’re going to go where the results are, and with a lot of our clients, we haven’t seen the performance on Twitter from an ad perspective that we have with other platforms.”
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“Twitter’s done a better job than many platforms at building trust with advertisers — they’ve been more progressive, more responsive and more humble about initiating ways to learn,” said Mark Read
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On Twitter, he has criticized ads as “manipulating public opinion” and discussed his refusal to “pay famous people to fake endorse.”
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“There’s a fork in the road, where Path A leads to an unfiltered place with the worst of human behavior and no brands want to go anywhere near it,” said Mr. Jones of Brandtech. “And Path B has one of the world’s genius entrepreneurs, who knows a lot about running companies, unleashing a wave of innovation that has people looking back in a few years and saying, ‘Remember when everyone was worried about Musk coming in?’”