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Twitter ad business could surge as advertisers pin hope on Musk -Breaking

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© Reuters. FILE PHOTO. Elon Musk, founder and CEO at Tesla Motors speaks to the media during a tour of Tesla Gigafactory in Sparks (Nevada), U.S.A, July 26, 2016. REUTERS/James Glover (2)

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By Sheila Dang

(Reuters] – Elon Musk’s deal worth $44 billion to buy Twitter Inc Many in the advertising industry worry that the private (NYSE:) could be the end for the platform’s advertising businesses.

Madison Avenue has been changing its attitude towards Musk’s upcoming Twitter version in the week since the announcement by the Tesla Inc Chief Executive on April 25, 2010.

Two ways optimism is manifesting is that optimism is growing.

Many ad buyers want to negotiate better deals with a company going through major changes. According to Reuters executives, others believe Musk can launch new products quicker than Twitter. Musk has tweeted new product ideas almost daily.

Musk’s desire to speed up product development is believed by many to attract new users, which will lead to a stronger marketing environment.

It is an improvement on the dim outlook of the advertising industry after Musk suggested that Twitter would shut down its $5 billion ad company. Musk, who tweeted that Twitter should be open to free speech and questioned the site’s reliance upon ads as a revenue source, said this view.

Musk’s slides showed investors that Twitter will reach 931 Million users by 2028. This is compared to 229,000,000 in the previous quarter. The New York Times reports that advertising revenue could more than double to $12 Billion, or about 45%, of Twitter’s total revenue.

Despite Musk’s statements about minimizing content censorship via the platform, he spoke in a video with Thierry Breton (EU industry chief) to discuss the upcoming Digital Services Act. This will mandate platforms to limit illegal content. Musk claimed he shared “everything” and was of “very similar mind”. [Breton] said.”

Some agencies have already advised clients to look again at Twitter as a business opportunity in the near term.

Unnamed executive at an ad agency said that they expect negotiations to start in the next months for lower prices on behalf clients. Twitter might be more flexible than usual during this period of uncertainty, before Musk’s takeover.

Code3, an agency which has previously worked with brands such as Chipotle (NYSE):), Dior, and Gap will recommend to some clients that they increase their Twitter investment in the short term to capitalize on the buzz Musk created on the platform. Lizzy Glazer is vice president for connections planning at Code3.

Musk declared Tuesday that he would reverse Twitter’s permanent suspension against former U.S. president Donald Trump during a Financial Times conference.

Reuters interviewed marketing and advertising professionals who said they’re watching Twitter closely and that most advertisers haven’t made any significant changes in their spending. This is reducing fears about Twitter being abandoned.

According to some experts, Twitter may actually be a better place for Musk-owned brands.

Musk might help Twitter be more competitive through new features, and increase user growth. Erica Patrick, Director of Paid Social Media at Mediahub Worldwide (NASDAQ:), said that Musk could make Twitter more attractive.

According to her, “Twitter was always fourth as a social network platform.” Musk is innovating and has the ability to think outside of the box. There are many things they can do faster if it is a private business.

Musk’s ownership might lead to more relaxed content rules, which could be a benefit for marketers looking to exploit viral events. Ishan Goel is the founder and CEO of Goel Strategies. He has previously worked with Colgate and Hulu.

He said, “Marketers get most viral moments when there is disruption.”

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