The aerospace company SpaceX, founded by Elon Musk, has acquired one of Twitter’s largest advertising packages. In doing so, the billionaire supported his social network, from which advertisers recently left. The advertising campaign will promote Starlink satellite internet in Spain and Australia.
According to sources among the current and former employees of the social network, the special package purchased by SpaceX costs more than $ 250,000 – ads are displayed in the main feed throughout the day. It’s now critical for Musk to sell more ads on Twitter, which has about 237.8 million “monetizable” users daily.
However, even a large Starlink campaign will not replace the numerous customers who have frozen advertising spend on Twitter or even left the platform altogether after Musk bought the social network. For example, General Motors, Audi, Volkswagen, General Mills, Pfizer and United Airlines have suspended spending in part due to a surge in inappropriate postings on the platform. The well-known advertising agency Interpublic Group recommended their clients to do the same. At the same time, advertising revenue accounts for 90% of all Twitter revenue.
The situation was compounded by the ability to purchase a blue verification badge for a symbolic $8. Accounts with such symbols have been used by pranksters and scammers to mislead users. For example, pharmaceutical giant Eli Lilly’s clone account caused major problems for the drugmaker by publishing a post about giving free insulin. The post went viral and the company’s shares fell significantly after the fake was published. Other large companies suffered as well.
Musk tweeted over the weekend that Twitter was the biggest source of clicks to other websites and apps on the web, but was quickly corrected by former employees and industry experts, saying the social network generates far less outbound traffic than Facebook.*LinkedIn etc., after which Musk had to correct the tweet and then delete it altogether.
At a meeting with company employees last week, Musk said that both in connection with the exodus of advertisers from the platform and against the background of the general economic crisis, a bankruptcy of the social network cannot be ruled out.
* It is included in the list of public associations and religious organizations for which the court made a final decision to liquidate or ban activities on the grounds provided for in Federal Law No. 114-FZ of July 25. 2002 “On Countering Extremist Activities”.