Mehul Reuben DasDec 05, 2022 12:10:03 IST
Elon Musk and his team at Twitter have finally started to steer the ship in the right direction it seems. Weeks after multiple brands and some of Twitter’s top advertisers had stopped advertising on the platform due to growing concerns about how the social media platform would moderate hate speech and bigoted content, two of Twitter’s top advertisers are finally back on the platform, and are spending heavily.
Just last week, Elon Musk went after Apple, the largest advertiser on Twitter for suspending their ad spending on the platform. However, after meeting with Apple CEO Tim Cook over the content moderation policies that Apple’s App store enforces, and the fact that Apple charges a 30 per cent commission on transactions of apps that have a revenue of over $1 million, Musk has announced that Apple has resumed its ad spends on Twitter.
Apple, on average, used to spend over $100 million a year on Twitter ads alone, before they decided to halt their ad spending on the platform. Going forward, it is expected that Apple will increase its ad spending.
Along with Apple, Amazon will also be resuming their ad spending on the platform. Amazon, just like Apple, will also spend about $100 million a year.
Zoe Schiffer of Platformer tweeted that Amazon is just waiting for some security tweaks to the company’s ads platform, before they resume their ad spending.
Elon Musk assuaged all worries that brands and advertisers would have about content moderation on the platform, when Musk decided to suspend Kanye West’s Twitter account, after his most recent anti-semitic comments, and Tweets supporting Hitler and Nazism.
Since Musk took over, Twitter lost nearly 50 of its top 100 advertisers on the platform. Up until a week ago, about a third of Twitter’s top 100 advertisers had not advertised on the platform for over two weeks.
Musk had to react quickly to news about Apple pulling out of Twitter ad spending, and in a way that restored the relationship between Apple and Twitter. Seeing one of the biggest advertisers pulling out of Twitter would have caused other advertisers to pull out as well. Or, they might have been put in a position to leverage Apple’s decision to quit to get a better deal.
While the looming recession and economic churn that certain tech companies like Amazon, Meta, Google and Microsoft are facing, maybe a reason why brands are reducing their ad spends and marketing budgets across social media platforms, the fact that Twitter has become so volatile is particularly concerning for brands and people who manage their brand’s ad-spending on Twitter.