Twitter could be in big trouble when it comes to generating ad revenue. According to Platformer and Digiday, the world’s largest ad agency, WPP’s GroupM — and Twitter’s biggest client in the past — is reportedly telling its clients that buying ads on the platform is “high-risk.
That makes it the third ad giant to tell large companies they may want to take their money elsewhere after IPG and Omnicom Media Group both suggested a moratorium on advertising on the platform.
GroupM works with Google, L’Oreal, Bayer, Nestle, Unilever, Coke and Mars, among others. If you’ve seen that chart about how several brands make almost everything you buy at the grocery store, you’ll see how influential GroupM’s client list is.
GroupM is reportedly concerned about several specific things since Elon Musk took over Twitter; in a filing, it cites the departure or firing of numerous Twitter executives (especially those responsible for safety, security and compliance), a wave of high-profile parodies by “authenticated” users, and concerns about Twitter’s ability to comply with Federal Trade Commission orders. Concerns.
According to a document seen by Digiday and a Slack message from the head of Twitter’s agency partnership seen by Platformer, there are several things that GroupM reportedly wants to see if Twitter wants to get back to business as usual. The list includes.
"Business restored to baseline NSFW levels." New IT security, privacy, trust and safety executives "Establish internal checks and balances" Transparency about programs that impact user or brand security, including changes to community guidelines and vetting policies Commitment to content vetting and ability to enforce platform rules"
To put it bluntly, such a narrative could be interpreted to mean that companies don’t want to advertise on such a platform and that advertising companies would consider their carefully crafted advertising messages, which could not be considered harmful to as many people as possible, to appear next to blatant hate speech, conspiracy theories, or, perhaps worst of all, various fake accounts even posting pictures of their beloved mascots giving people the middle finger.
GroupM did not immediately comment on the request, and Twitter no longer has a communications department to handle such requests. But inside sources seen by Platformer say Twitter is “discussing” GroupM’s request with leadership.
Why is Elon Musk so desperate to make money for Twitter? Although Musk has said he wants to free Twitter from its dependence on ad revenue, he hasn’t done so yet. For one thing, many people can’t even buy the company’s premium Blue subscription service right now because the company has temporarily suspended the program. Musk says Twitter is burning through about $4 million a day, and he’s also paying huge interest on the debt he incurred when he first bought it. If Twitter wants to keep growing, it needs money – but it seems advertisers are increasingly hesitant to offer it.
