Twitter, which began laying off employees on Nov. 4 to cut costs, is a different story.
Unlike Tesla, the platform does not generate its revenue from the sale of physical products. Like other social networks, Twitter relies on advertisers to promote their products and services. The company sells them commercials.
Ad revenue accounted for 91.4% of the $1.2 billion in revenue Twitter generated in the second quarter ended June 30, according to a regulatory filing. The other income consisted of subscription fees.
It is therefore not good to have a problem with advertisers, who usually have specific requirements. These requirements usually revolve around the content near which their products appear. Most advertisers don’t want their ads associated with controversial or offensive content.
This is the message they sent to Musk, the new boss of Twitter since October 27. The billionaire describes himself as an ‘absolute freedom of expression’. In other words, he believes that anything can and should be said as long as it doesn’t violate the law.
Advertisers have recently expressed fears that the platform will once again turn into a free hellscape. About a dozen advertisers asked ad-buyer GroupM to suspend their ads on Twitter in the event that Donald Trump’s account was reactivated, according to the Wall Street Journal.
( has temporarily suspended its ads, a spokesperson told TheStreet. GM)
“We are working with Twitter to understand the direction of the platform under their new ownership,” said David Caldwell, a GM spokesperson. “As is normal business with a major media platform change, we have temporarily paused our paid advertising.”
(Pfizer GIS) ( and Audi PFE) ( followed the lead of the Detroit giant and decided to temporarily pause their ad investments allocated to Twitter. They all say they want to see what the new Twitter will look like. VLKAF) ‘Massive fall’
The withdrawal of brands affects the company, Musk said. The billionaire is trying to find a way to increase revenue after paying $44 billion to acquire the platform.
“Twitter has had a massive drop in revenue due to activist groups pressuring advertisers, even though content moderation has not changed and we have done everything we can to please the activists,” the billionaire lamented on Nov. 4.
He added: “Extremely confused! They are trying to destroy free speech in America.”
It seems businesses were not reassured by an Oct. 27 message from the billionaire promising them there will be consequences for who crosses borders on Twitter.
He has established a council that is responsible for determining content policies. The council will investigate what to do with banned accounts, such as Donald Trump’s, and decide what posts are acceptable on the platform, but no decision will be made before the midterm elections scheduled for Nov. 8, Musk has assured.
“Twitter, of course, cannot become a free hell, where everything can be said without consequences!” he wrote to advertisers.
There will be no major content decisions or account recovery before that council meets,” he added on Oct. 28.
“Twitter will not allow anyone who has been removed from the platform for violating Twitter rules back on the platform until we have a clear process to do so, which will take at least a few more weeks,” he doubled on Nov. .
But organizations have indicated that racist comments have flared up on Twitter since Musk took ownership.
The number of trolls using the N-word on Twitter rose 500% within 12 hours of the $44 billion deal closing, according to a report by the Network Contagion Research Institute, a group that researches social media content to identify threats that could arise .
However, Twitter has made it clear that these racist and hateful comments came from unverified accounts, aka bots.
“Nearly all of these accounts are not authentic,” said Yoel Roth, Twitter’s Head of Safety & Integrity. “We have taken action to ban the users involved in this trolling campaign – and will continue to work in the coming days to address this to make Twitter safe and welcoming for everyone.”