How Elon Musk’s Latest Move Could Revolutionize Advertising on Twitter?

How Elon Musk's Latest Move Could Revolutionize Advertising on Twitter?

Elon Musk, the billionaire, revealed on Friday that Twitter will begin sharing advertising money with verified authors on the network for ads that show in responses below the material they publish.

“In a few weeks, X/Twitter will start paying creators for ads served in their replies,” Musk said in a tweet. He went on to say that the first block payment will be roughly $5 million, that “the creator must be verified, and only ads served to verified users count.”

In March, Musk stated that the platform produces roughly 5 or 6 cents per hour in ad income from users and voiced his view that this might be grown to 15 cents or more with more relevant and timely advertising for platform users.

Since Musk and a group of investors he led bought Twitter for $44 billion and took it private last year, he has emphasized the need to grow income through a range of new initiatives, including the paid subscription verification service known as Twitter Blue.

The social media firm has launched a programme that allows producers verified through the Twitter Blue service to provide premium memberships to their users in exchange for exclusive content. Subscribers can pay $2.99, $4.99, or $9.99 each month to access creators’ material.

Twitter’s latest initiatives are intended at addressing the platform’s long-standing money generation issue. According to Musk, at the time the investment group took over the firm, Twitter was losing around $4 million per day. This triggered a wave of layoffs that affected over half of the company’s 7,500-person staff in an effort to avoid insolvency.

Musk claimed in March that the changes had given Twitter “a shot at being cash flow positive” in the second quarter of 2023, though he advised at the time not to “count chickens before they hatch.”

Musk declared his desire to stand down as CEO of Twitter late last year, after the nomination of his replacement. 

Linda Yaccarino, a former NBCUniversal advertising executive whose appointment as Twitter CEO was announced in mid-May, revealed last Monday that she had started working in the post and tweeted that her first day was ‘in the books’! She also teased more developments and encouraged fans to “stay tuned.”

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