With Elon Musk’s $44 billion deal to buy Twitter expected to close on Friday, one topic of some concern is advertising revenue — particularly if Musk takes controversial steps like reinstating the account of former President Donald Trump.
In an open letter of sorts posted on the platform, Musk reached out to advertisers to assuage those concerns. While stressing the need for a “digital town square,” he acknowledged there must be limits to what Twitter allows.
“There is currently great danger that social media will splinter into far right wing and far left wing echo chambers that generate more hate and divide our society,” Musk said. “...Twitter obviously cannot become a free-for-all hellscape, where anything can be said with no consequences! In addition to adhering to the laws of the land, our platform must be warm and welcoming to all, where you can choose your desired experience according to your preferences.”
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That said, depending on how Musk handles content moderation, particularly with regard to Trump, there could be an impact on advertising. One ad agency said it has already received requests from roughly a dozen clients to pause their Twitter ad spending if Trump’s account is restored, according to reporting from The Wall Street Journal on Thursday.
In his letter, Musk also spoke to the importance of personalized ads, tailored to individualized consumer data.
“Advertising, when done right, can delight, entertain and inform you ... for this to be true, it is essential to show Twitter users advertising that is as relevant as possible to their needs,” Musk wrote. “Low relevancy ads are spam, but highly relevant ads are actually content!”
“Fundamentally, Twitter aspires to be the most respected advertising platform in the world.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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