Image Source: PYMNTS
Twitter Inc. is introducing a new plan to entice brands to return to the social media network, which has seen its ad business decline since Elon Musk’s $44 billion buyout.
According to emails from The Wall Street Journal, the internet company is dangling free ad space by offering to match advertisers’ ad spending up to $250,000. According to the emails, the entire $500,000 in ads must run by February 28.
Twitter did not react to a comment request.
The incentives are the company’s attempt to entice advertisers to spend money on its platform. For example, Twitter recently offered marketers $500,000 in free advertising if they spent at least $500,000.
According to ad buyers, the incentive might be used to purchase promoted tweets during Super Bowl week, a critical selling season for Twitter. Advertisers have rushed to Twitter in recent years to generate excitement around their big-game marketing initiatives. According to the Journal, Twitter’s most profitable day of the year is the Super Bowl.
Twitter is under extreme financial pressure to entice back the numerous advertisers who have stopped spending since Mr. Musk bought the firm in late October. Advertisers left mostly due to concerns about Mr. Musk’s approach to content management and the possibility that their ads may display near-problematic content.
In November, Mr. Musk stated that Twitter had experienced a “huge reduction in revenue” and was losing $4 million per day.
Many major corporations, including Pfizer Inc., United Airlines Holdings Inc., General Motors Co., and Volkswagen AG, have reduced their spending on Twitter. According to an analysis of Sensor Tower data, more than 75 of Twitter’s top 100 ad spenders before Mr. Musk’s takeover were not spending on the platform as of January 8.
It is vital to persuade marketers to return to Twitter. Ads accounted for about 90% of Twitter’s $5.1 billion revenue in 2021.
To be eligible for the latest incentive, a company must use specific Twitter products, such as its recently introduced keyword-avoidance tool, which allows advertisers to generate a list of up to 1,000 phrases and avoid having their advertisements show above or below tweets containing those words.
Mr. Musk stated last month that he expects Twitter to reach a cash-flow break-even in 2023. However, he has previously raised the threat of bankruptcy.
Mr. Musk stated that Twitter was on track to have a negative cash flow of $3 billion per year before decreasing expenditures, including thousands of job cuts. He stated that the staff was approximately 2,000 persons, as opposed to approximately 8,000 earlier.
Twitter closes several overseas offices
Elon Musk is eliminating numerous overseas Twitter offices as he tries to slash costs and find methods for the company to earn money.
According to two people familiar with the company and texts obtained by Insider, at least a dozen overseas offices are closed or in the process of closing, with several more in the United States set to close in the coming weeks. The closures are also expected to result in a few hundred more Twitter employees losing their jobs, on top of the hundreds who have already been laid off, fired, or opted to resign since Musk took over Twitter a little over two months ago.
According to those familiar with the situation, certain offices are closing, including those in Hong Kong and the Philippines and Mexico and Africa, where all Twitter employees were put off in November. In addition, locations in Australia, South Korea, and most of the offices in Europe and India are also closed or anticipated to close in the next weeks, according to people familiar with the situation, who asked not to be identified because they were discussing corporate affairs.
According to Platformer reporter Casey Newton, a significant office in Singapore, Twitter’s Asian headquarters, is also closing as of Wednesday due to non-payment of rent. The landlord of the building in Singapore, where Twitter is based, could not be reached for comment. According to one source, some other offices are also closing because Twitter has not paid its rent.
According to one source, Musk paid the past-due rent for the Singapore headquarters late Wednesday evening Pacific Time. CapitaLand, a large Asian landlord and real estate holding company, owns the property. In addition, employees who were forced to leave the office during the workday owing to Twitter’s eviction have been told to return to the office, according to an insider familiar with the situation.
Read Also: Elon Musk will step down as Twitter head
Twitter once had more than a dozen foreign offices in key cities worldwide, including Paris, Madrid, Berlin, Ghana, Manila, Mumbai, Bangalore, and Jakarta, as well as about 20 locations in the United States. However, according to one person familiar with the matter, the company is now considering reducing its operations to just a few, such as key locations in the United States, such as San Francisco, New York, and Los Angeles, as well as globally in London, Tokyo, and Dublin.
Twitter did not respond to an email requesting comment.
Twitter’s most recent office opening occurred in Ghana in 2021, marking the company’s first official presence in Africa.
Opinions expressed by California Gazette contributors are their own.