Topline
Twitter owner Elon Musk’s plan to right the social media company’s financial ship while also loosening its content moderation rules has faced early headwinds, with several large companies taking a pause on Twitter ads or deleting accounts altogether until they have a fuller view of how the platform will look under his leadership.
For the birds? Many of Twitter’s big-name advertisers have decamped until they see how new owner … [+]
Timeline
Musk tweeted Apple “has mostly stopped advertising on Twitter,” though it’s not clear to what extent the company may have cut back (Apple did not immediately respond to a request for comment from Forbes).
The Balenciaga fashion house deleted its Twitter account, which had amassed just under 1 million followers, though it’s unclear if any brand advertising was suspended (Balenciaga did not respond to a Forbes request for comment).
Chipotle is pulling down ads on Twitter until the company has a “better understanding” of the new environment on the platform, according to Bloomberg.
NAACP President Derrick Johnson called for all companies to pull ads from Twitter, tweeting it is “highly destructive to our democracy for any advertiser to fund a platform that fuels hate speech, election denialism and conspiracy theories”
The Wall Street Journal reported that General Mills, Pfizer, Audi, Volkswagen and Mondelez International Inc.—the maker of Oreos—stopped advertising on Twitter after Musk took over the company, in part due to concerns about how Twitter will moderate content.
Advertising company Interpublic Group, whose clients include CVS and Nintendo, has reportedly recommended its clients temporarily stop buying Twitter ads.
Havas Media—another advertising firm—is also telling clients it’s best to pause their Twitter advertising, according to the Wall Street Journal.
Automakers Ford and General Motors told Forbes they will not be buying ad space on Twitter until they better understand the platform’s future.
Twitter has not responded to requests for comment from Forbes.
Tangent
Musk recently told investors he wants to triple the number of daily users who see ads on Twitter, according to the Washington Post.
Contra
Possibly seeking to ease concerns about the platform’s direction, Musk tweeted an open letter to advertisers in October promising that Twitter would not become a “free-for-all hellscape, where anything can be said with no consequences” under his leadership. He also said each user would be able to “choose your desired experience according to your preferences.”
Key Background
Musk claimed he wanted to buy Twitter for the good of humanity since he believes it is a “digital town square, where a wide range of beliefs can be debated in a healthy manner.” A spike in hate speech was reported immediately after Musk took over as Twitter owner in October as some users appeared intent on testing the new owner’s boundaries, with the Network Contagion Research Institute finding use of the N-word rose more than 500% over the course of 12 hours, while reports of antisemitic, misogynistic and anti-LGBTQ+ language have been rampant. Musk also reinstated former President Donald Trump’s account, though Trump has not tweeted since being allowed back, and Musk has vowed to grant “amnesty” to nearly all other banned accounts, seemingly including those suspended for hate speech. The unilateral moves come after the billionaire promised Twitter would create a “content moderation council” to determine a “clear process” for allowing banned users back on the platform.
Surprising Fact
Musk has also pointed to an enhanced Twitter Blue subscription service as a way of increasing revenue, but his proposal to charge $8 a month for users to acquire or keep a verified check mark has been widely panned. A Forbes analysis found some 10.4 million users would have to buy into the subscription service to service the company’s debts—about 25 times more than the 400,000 accounts that have been verified for free.
Further Reading
Elon Musk Has Twitter Bills To Pay, But Charging For A Blue Checkmark Won’t Be Enough (Forbes)
General Mills, Audi and Pfizer Join Growing List of Companies Pausing Twitter Ads (Wall Street Journal)
GM, Ford Say They Aren’t Running Twitter Ads As They Assess Changes Under Elon Musk (Forbes)
Musk Says Twitter ‘Cannot Become A Free-For-All Hellscape’ Ahead Of Purchase (Forbes)
Trump’s Return, Potential Layoffs: What To Watch For As Musk U-Turns (Again) To Buy Twitter (Forbes)
Twitter Will Sell Coveted Blue Checkmark For $8 A Month, Musk Says—But Benefits Still Unclear (Forbes)
