Twitter is set to introduce a new program that will pay verified content creators for incorporating ads into their replies, according to a tweet by Elon Musk, the billionaire who acquired the platform last October. The initiative aims to address the struggles Twitter has faced in retaining advertisers since Musk took over. Advertisers have been concerned about the placement of their ads, especially after the company laid off a significant number of employees.
Musk’s tweet specified that only verified creators would be eligible for the program, and only ads served to verified users would be counted. This move coincides with the appointment of Linda Yaccarino, an advertising veteran from NBCUniversal, as Twitter’s new CEO. Yaccarino’s extensive experience in the advertising industry is expected to bring a fresh perspective and drive revenue growth for the social media platform.
In March, Musk had commented on Twitter’s potential to increase its revenue through advertisements that are more relevant and timely. He mentioned that the platform currently earns around 5 or 6 cents per hour of user attention but could raise that figure to 15 cents or more. However, Twitter has witnessed a decline in big-ticket advertisers, with around 625 companies, including Coca-Cola, Jeep, Unilever, Merck, and Wells Fargo, halting their spending on the platform since January. As a result, Twitter suffered a substantial loss of approximately $4.5 billion in advertising revenue.
To mitigate these losses, Musk implemented various measures, such as running a Super Bowl “fire sale” offer and participating in a brand safety campaign that assured advertisers their ads would not appear alongside unsafe or inappropriate content. These efforts aimed to regain advertisers’ trust and rebuild Twitter’s revenue streams.
Recently, Twitter also hired Joe Benarroch, a senior executive from NBCUniversal, to oversee business operations. In a memo to colleagues, Benarroch expressed his excitement about joining Twitter and working with the team to shape the future of the platform. Incoming CEO Linda Yaccarino welcomed him with a tweet, referring to the Twitter community as a “flock.”
Since the acquisition by Musk, Twitter has experienced significant turnover in its workforce. Approximately 75% of employees have either been fired or left the company, including key personnel responsible for sales and partnerships. Ella Irwin, the head of trust and safety, recently announced her resignation, followed by the departure of A.J. Brown, the head of brand safety and ad quality, as reported by Reuters. These departures raise concerns about the stability and expertise within Twitter’s internal teams.
In summary, Elon Musk’s announcement of Twitter’s new program to compensate verified content creators for incorporating ads in their replies reflects the platform’s efforts to address the decline in advertiser retention. With Linda Yaccarino assuming the role of CEO and Joe Benarroch joining as a business operations executive, Twitter aims to revitalize its revenue streams and attract advertisers back to the platform. However, the high employee turnover poses challenges in terms of retaining experienced personnel and maintaining stability within the company.
