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Twitter Inc. has announced a new approach to entice advertisers to return to the social media network, which has suffered a decline in ad revenue since Elon Musk’s $44 billion buyout.
According to emails obtained by The Wall Street Journal, Google is dangling free advertising space by promising to match advertisers’ ad spending up to $250,000. The entire $500,000 in advertisements, according to the emails, must run by February 28.
A comment request was not responded to by Twitter.
The incentives are the corporation’s attempt to entice marketers to spend money on its platform. For example, Twitter recently offered businesses $500,000 in free advertising if they spent at least $500,000.
The incentive, according to ad buyers, may be used to purchase promoted tweets during Super Bowl week, a vital selling season for Twitter. Advertisers have rushed to Twitter in recent years to generate excitement around their big-game marketing efforts. The Journal reports that the Super Bowl is Twitter’s most profitable day of the year.
Twitter is under intense financial pressure to entice advertisers who have stopped spending since Mr. Musk bought the firm in late October. Advertisers mostly fled due to concerns about Mr. Musk’s approach to content management and the possibility that their advertisements would display potentially harmful content.
In November, Mr. Musk stated that Twitter had experienced a “dramatic drop in revenue” and was losing $4 million per day.
Pfizer Inc., United Airlines Holdings Inc., General Motors Co., and Volkswagen AG are among the companies that have reduced their investment in Twitter. More than 75 of Twitter’s top 100 ad spenders previous to Mr. Musk’s acquisition were not advertising on the site as of January 8, according to a Sensor Tower data analysis.
Persuading advertisers to return to Twitter is critical. In 2021, ads represented over 90% of Twitter’s $5.1 billion income.
To qualify for the latest incentive, a corporation must use certain Twitter products, such as the recently announced keyword-avoidance tool, which allows advertisers to compile a list of up to 1,000 terms and avoid having their adverts appear above or below tweets containing those words.
Last month, Mr. Musk remarked that he expected Twitter to achieve a cash-flow break-even point in 2023. He has, however, before threatened bankruptcy.
Mr. Musk indicated that Twitter was on track to have a negative cash flow of $3 billion per year before cutting costs, which included thousands of job cutbacks. He stated that the staff was approximately 2,000 employees, down from approximately 8,000 earlier.
Twitter is evicting many of its offices overseas
Elon Musk is closing multiple Twitter operations abroad to cut costs and create new revenue streams for the firm.
At least a dozen international offices have closed or are in the process of closing, according to two sources familiar with the company and texts obtained by Insider, with several more in the United States slated to close in the coming weeks. The closures will also result in a few hundred additional Twitter employees losing their jobs, on top of the hundreds who have already been laid off, sacked, or opted to resign since Musk took over Twitter a little more than two months ago.
According to sources familiar with the issue, certain offices are closing, including those in Hong Kong, the Philippines, Mexico, and Africa, where all Twitter employees were laid off in November. In addition, according to persons familiar with the issue who asked not to be identified because they were discussing company matters, locations in Australia, South Korea, and the majority of offices in Europe and India are also shuttered or expected to close in the coming weeks.
According to Platformer reporter Casey Newton, Twitter’s Asian headquarters in Singapore is closing as of Wednesday due to non-payment of rent. The landlord of the building where Twitter is based in Singapore 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 office late Wednesday evening Pacific Time. CapitaLand, a large Asian landlord and real estate holding business, owns the property. According to a source acquainted with the matter, staff forced to leave the office during the workday due to Twitter’s eviction have been told to return.
Twitter used to have more than a dozen overseas offices in major cities worldwide, including Paris, Madrid, Berlin, Ghana, Manila, Mumbai, Bangalore, and Jakarta, as well as approximately 20 locations in the United States. However, according to one source familiar with the situation, the corporation is now considering consolidating its operations to a few important sites in the United States, such as San Francisco, New York, and Los Angeles, as well as globally in London, Tokyo, and Dublin.
An email requesting comment from Twitter still needs to be returned.
Twitter opened its most recent headquarters in Ghana in 2021, marking the company’s first official presence in Africa.