Musk’s Twitter takeover may boost Facebook, Google, Snap ad revenues
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Elon MuskPrivate takeover by TwitterRecent notes from Wall Street analysts suggest that YouTube, Snap, Meta, and TikTok may increase ad revenue, according to several Wall Street firms.
Twitter announced the news accepted Musk’s bidMonday’s reliance on advertising sales was high. They accounted for $1.41 Billion, the largest share of revenue in its history. most recent quarter.
Musk has two options that could potentially draw ad dollars from the company, however. Outspoken Musk TeslaSpaceX CEO, John M. Parker has stated free speech is essential for the platform. SpaceX could be forced to reduce content moderation. JMP analysts stated Tuesday that brands could stop spending if they don’t want their content appearing alongside misinformation and hate speech.
JMP analysts said that with 85% of Twitter’s revenue coming from brand advertising and Mr. Musk’s priority being free speech, advertisers could shift money to other channels due to brand safety concerns. It could prove to be beneficial. YouTube, Snap, MetaTikTok and the company speculated.
Madison Avenue is not a company that has taken content moderation lightly in the past. In July 2020, Facebook’s “StopHateForProfit” campaign included major advertisers. UnileverTo StarbucksAnnouncement various pauses in spending. 2017 saw brands such as Coca-ColaAnd Microsoft pulled ad spend from YouTubeover ads placed next to extremist material.
Musk also appears to be keen on building the company. company’s subscription modelYou would see fewer advertisements if you chose to use the.
Musk stated in an unpublished tweet that “Everyone who sign up for Twitter Blue (3 ie dollars per month) should receive authentication checkmark.” “And no ads. Twitter’s survival depends on the advertising revenue it receives. This increases corporations’ power to set policy.
It could be beneficial for smaller players, such as PinterestSnap, MKM analysts written in a Tuesday Note.
Evercore analysts stated that marketers have a distinct possibility of taking their campaigns to Reddit or Google and platforms like Snap, Meta, Snap, TikTok, Meta and Google.
Stifel analysts also agreed. Stifel analysts said Monday that if Twitter decided to leave the advertising business, it would be a positive change for our coverage. The roughly $7bn of advertising revenue Twitter is likely to generate in 2023 will shift to other platforms. The firm stated that those advertising budgets could shift to TikTok or Pinterest.
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