Ex-Twitter Resorts To Threatening Companies It Will Take Away Their Verification If They Don’t Start Buying More Ads
from the carrot-and-stick-and-stick-and-stick dept
It’s no secret that Elon Musk is desperate for advertisers to return to the platform. He just recently admitted that the company is still cashflow negative and that around 50% of advertisers have left (other reports say the number is bigger). This is despite his earlier claims that the company would break even on a cashflow basis in Q2 (not to mention, despite not paying a bunch of bills).
Basically ever since he took over and lots of advertisers bailed out, directly in response to Elon’s self-created liability, the company has made a few desperate moves to lure them back. Back in February, we wrote about the company promising $250,000 in free ads if companies would spend $250,000 in ads. It didn’t seem to work.
Hell, it’s pretty obvious that the reason Elon hired Linda Yaccarino to play the role of Chief Marketing Officer (but with a shiny-if-misleading CEO title) was her strong relationships with big advertisers.
But, as the Wall Street Journal is reporting, it appears that the “carrot” approach of deeply discounted advertising isn’t working well enough on its own. Ex-Twitter is now breaking out some sticks to try to pressure companies into advertising:
X also warned advertisers that beginning Aug. 7, brands’ accounts will lose their verification—a gold check mark that indicates their account truly represents their brand—if they haven’t spent at least $1,000 on ads in the previous 30 days or $6,000 on ads in the previous 180 days, according to the email.
So, look, we know already that Elon simply cannot wrap his mind around the purpose of Twitter verification. I mean, the Twitter Blue debacle is well understood by everyone but Musk. The whole thing was so dumb, and so disastrous to trust and brand safety on the platform that it drove away plenty of companies, leading the company to make a hasty change and bring back some form of the old verification in the form of “gold checkmarks” for “some” businesses.
It seemed transparently obvious that these gold checkmarks were going to companies that Twitter wanted to appease so they would continue advertising.
And, when looked at through that lens, you can totally understand why the company is frustrated that the companies they “gifted” gold checkmarks to aren’t returning the favor by advertising. Hence this little shakedown.
“Nice gold check mark you got there. You wouldn’t want anything to, uh, happen to it, y’know?”
But, really, this seems like the kind of move likely to drive away advertisers than retain them. It’s just yet another reason not to trust the platform or Elon, who will change the terms of whatever he agrees to to benefit himself in the end.
Of course, the WSJ article also notes that Twitter is, once again, drastically discounting ad buys:
It is offering 50% off any new bookings of those ads until July 31, among other discounts. “The goal of these discounts is to help our advertisers gain reach during crucial moments on Twitter such as the Women’s World Cup,” one of the emails read.
As a separate point, I’ll just note that, back in February, they were talking about 50% off ads for $250,000 spends. Now they’re trying to cajole and coax companies into spending… $1,000.
Things must be rough on the revenue front.
Filed Under: advertising, elon musk, gold check, linda yaccarino, shakedown, threats
Companies: twitter, x
Comments on “Ex-Twitter Resorts To Threatening Companies It Will Take Away Their Verification If They Don’t Start Buying More Ads”
Anyone think this will convince the Muskovites that Twitt-, I mean X isn’t as profitable as they think it is?
Nah, that would go against their worldview of Musk being infallible.
Re:
“Muskovites” will believe in Musk’s fallability at about the same time as Trumpers believe in Trump’s fallability.
Re: Re:
You cannot fall if you eject bullshit at ballistic speed.
Good for Mr. Musk. Those advertisers have gotten too big for their britches, and they need taking down a peg or two if they’re not willing to splash cash.
Only wish he or Yaccarino could administer them an IRL beat-down!!
Re:
Poe’s Law strikes again:
I can’t tell if this is well-done satire or “true-believing”.
Re: Re:
I prefer to use the Rule of Goats in this situation.
Those that make use of the website formerly known as Twitter, could now be referred to as “being on X”.
This would explain a lot because apparently, Ecstasy can make some users feel anxious, confused, and paranoid, like someone is trying to hurt them or is plotting against them.
Ex-Twitter is on its way to being ex-X if such desperate measure to gain income are being used.
Not sure if this is a case of:
‘X’ spots the marks
or
‘X’ marks despot
To paraphrase Yogi Berra
If somebody doesn’t want to advertise with you, you can’t stop ’em
Mike - Choose Better Analogies
I take issue with your “carrot and stick” reference.
A “stick” requires that someone actually have leverage in the situation.
When you’re an impotent little bitch who’s destroyed his platform market value and people are dropping off it faster than the Titanic was abandoned, there is no threat of a “stick.”
🙂
(To be clear, this is directed towards you in jest.)
A short moment from now-old Top Gear.
“That is an ex-dove.”
https://www.youtube.com/watch?v=1fJVwFBrUm4
Re:
Clearly misappropriated from “this is an ex-parrot”, spoken in a John Cleese voice.
When I think of Musk the only X I think of is the Confederate flag.
Getting a little less subtle with the desperation and extortion there...
Well that’s one way to get advertisers to not only not pay you but to cut ties entirely in a very public manner.
With the chance for others to swoop in and impersonate a company should the company not be paying the dane-geld then it would seem the only reasonable choice would be to leave the platform completely and make it absolutely clear that anyone using a company’s name there is not an official rep from the company.
Every time you think Elon couldn’t possibly top his last act of boneheaded idiocy showing just how much of a business genius he isn’t damn if he doesn’t take that as a challenge.
Re:
Turns out Musk really is a genius, only it’s at fucking things up and making the wrong decisions. He should manage to make a right decision 50% of the time by sheer chance, but he’s got a 100% wrong decision streak going. That takes talent.
Re: Re: Knowing where the pitfalls are is a valuable bit of knowledge
It’s a skill that is just begging for someone not him to exploit really, and it’s not like it would be difficult to do so.
Step 1) Ask Elon what should be done by a business facing a particular problem.
Step 2) Absolutely do not do whatever he suggests.
Step 3) Profit, or at last avoid losing money.
Ex-Twitter headline
The beatings will continue until (Advertising) moral improves!
With all these 50% discounts and simplistic prices, is musk actually Rod from Birdemic? Though Rod is probably smarter…
Re:
He’s probably hangin’ out with his family; havin’ himself a party…
It’s a bold strategy Cotton; let’s see if it pays off for him.
Re:
Oh no!
Anyway…
Yacc, is that you?
TwiX -hole
Elon Musk is begging for advertisers. 😂