Twitter will reportedly offer generous incentives for major brands to advertise on the social media platform.
In a move that hopes to change the tide after Elon Musk’s arrival at Twitter, many advertisers have scaled back their advertising efforts because of concerns about his content review policies.
In an email to ad agencies, Twitter said it will launch its “largest ever advertiser incentive program” in December, rewarding advertisers with additional exposure if they reach a certain level of investment.
The email said advertisers who spend between $500,000 and $1 million on Twitter will receive a matching bonus. Advertisers who spend $350,000 will receive half a bonus — half the exposure they have already purchased. Advertisers who spend $200,000 will receive a quarterly bonus.
Twitter also offered the same deal for U.S. brands in an email to another ad agency, with a slightly modified offer for brands in the U.K. and elsewhere.
Elon Musk completed his $44 billion acquisition of Twitter in October. But his subsequent moves have alienated major brands and ad agencies, including loosening content audits, reinstating offending accounts and laying off 50 percent of the workforce (including a large number of salespeople).
Advertisers including United Airlines and General Motors have stopped running ads on Twitter, and ad agencies like Omnicom Media and Interpublic Group have recommended that clients suspend placements, hitting Twitter’s $5 billion business.
To complete the acquisition, Elon Musk has saddled Twitter with $13 billion in debt, with the interest of up to $1 billion a year.
Emails indicate that Twitter’s latest promotional offer will run through the end of December and that they are inviting major brands and ad agencies to communicate by phone.
For now, Twitter has not commented.
Elon Musk describes himself as a “free speech absolutist” who allows people to post anything on Twitter as long as it complies with the law. However, “negative/hate speech” will not be boosted by the system. The company is no longer prioritizing blocking false information related to Newcastle pneumonia, but they said in a tweet Wednesday that their policy has not changed and that the trust and security teams remain “strong and well-resourced.
Elon Musk has even called companies that have cut back on ad spending on the Twitter platform to personally reprimand their CEOs. For example, Apple CEO Tim Cook, one of Twitter’s biggest advertisers, was publicly shouted down by Elon Musk on Monday for cutting back on Twitter ad spending.
After several rounds of layoffs and departures, Twitter’s advertising team has shrunk so much that many ad agencies and brands can no longer even find a counterpart, people familiar with the matter said. There have also been complaints that Twitter’s advertising system has become laggy and difficult to use during Elon Musk’s changes.
People familiar with the matter said that although Twitter’s promotion was very generous, some brands were not impressed. One ad agency executive said the move “won’t affect advertisers’ decisions.
“It’s reminiscent of the guy who played the violin on the Titanic.” Another agency executive said, “I don’t think any client will want to take the risk.”
