Advertisers finally have a reason to leave Twitter: ‘I can’t trust Mr. Musk at the helm’ | Digiday

It’s been a year full of tough decisions for marketers, but staying on Twitter or leaving Twitter may be the easiest decision yet.

Will it continue to advertise in a place where the line between hate speech and free speech is becoming increasingly blurred, or will it take away the little bit of money it was putting into it? Ever since controversial billionaire Elon Musk took control of Twitter, marketers have been faced with this option. If you think about it, it may not even be a choice.

“Most of the marketers I’ve spoken to have pulled their money since the end of October,” said a senior agency executive who has met with advertisers to discuss the matter. “Frankly, for senior marketers who care about safety and brand reputation in consumer media, the most sensible thing they can do right now is put those funds on hold.”

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In short, an advertiser boycott of Twitter is currently the safest move in marketing.

The ‘uncertainty’ of buying Mr. Musk

One agency exec, who requested anonymity, said he didn’t have approval to speak to Digiday. “Most of the clients I talk to are waiting and waiting to see what happens and where things are going. It seems like they’re going to sit on the sidelines until it’s clear, and if they ask for advice, we’ll offer it, but the client is already ready.”

They’re already ready because Mr. Musk was the first toproposed acquisitionSince April, it’s been clear from afar that the Twitter acquisition is going to be rocky. And so it was. This takeover drama is full of corporate distractions, memes, broken promises, threats, whistleblowers and legal squabbles. Marketers watched all this unfold from the sidelines, initially disturbed by the prospect of an acquisition,Once it is realised, let go of the mindhas now officially stepped down, fully realized.

The unstable situation is also reflected in the business results. Twitter’s second quarter earnings calltotal saleswas 1.18 billion dollars (about 165.2 billion yen), down 1% year-on-year. Of that, $1.08 billion (about ¥151.2 billion) was from advertising sales, which showed a slight increase compared to the same period last year. “Uncertainty” about the Musk acquisition, which was on hold at the time, was said to be affecting earnings.

“We talk to our clients individually and we see a lot of turmoil as we look to the election season,” said Melissa Weishart, global head of media at Media.Monks. “In general, a lot of our clients are pretty defensive when it comes to brand safety. .

Musk’s thinking behind the ‘reassuring remarks’

Understandably, marketers are confused. The acquisition made the future significantly more uncertain.

Can Mr. Musk run three venture companies? How the Content Moderation Council makes Twitter a safe place. Which direction will the business take under the helm of the eccentric Mr. Musk? Will the subscription version of Twitter reduce the size and quality of advertisers’ audiences compared to the free version? Marketers want answers to these questions. So far, the answers don’t seem to come in rapid succession. Every once in a while you get an answer, but that leads to more questions.

Consider, for example, the problem of content moderation. Musk and other Twitter representatives have told marketers that there will be no policy changes, inside or out. While this sounds reassuring, marketers don’t see it that way. I want you to remember This “reassuring” statement comes from a self-proclaimed “free speech absolutist.”

As one media buyer put it: “The summary of Twitter’s response to advertisers is ‘Please wait until it’s resolved,’ and that speaks for itself.”

But there is a limit to how marketers can wait. After all, they don’t necessarily trust Mr. Musk. Executives Digiday spoke to were clear on that point. At the very least, he wants to learn more about app content moderation, especially as it relates to the Content Moderation Council touted by Musk. Whatever it is, advertisers will have their say.

“They’re probably going to let Musk do whatever he wants,” said Jess Phillips, founder of The Social Standard. “If things go well, they won’t complain; if they don’t, they will speak up.”

Advertisers continue to worry

Some marketers have already spoken out. Opened November 3rdMr. Musk and a large media agency networkIn a meeting with Twitter, some agency execs were outspoken about what they thought of Twitter’s new owner, Musk, about the changing plans. In other words, the meeting did nothing to alleviate their concerns.

“Even if Mr. Musk declares that Twitter won’t turn into an ‘anything goes hell picture’ and promises he won’t kill all ads, advertisers have reason to believe it. No,” said eMarketer principal analyst Jasmine Enberg. There is currently no trust in Mr. Musk. “In the past when other platforms had issues like this, there were people in the company who could appease advertisers. Musk fired all those people. We have to build trust between us.”

The reality is that advertisers who have left Twitter won’t come back until they have more proof that Twitter isn’t the arena for global hoaxes and hate speech. They want to know exactly what Twitter’s new policy on content moderation is, if any policy is finalized, will there be enforcement measures to ensure compliance, and most of all, this policy. is consistent with industry standards.

“I know Elon Musk has said he’ll set up a council to hear diverse voices, but I have no faith in him. I have no faith in him as the helmsman of Twitter.” said Tamara Littleton, CEO of social media agency The Social Element. The company advises clients to pause advertising on Twitter and wait and see. “If you can’t really do a good job of moderating and managing both content and behavior, you’re going to be a lord of the flies very early on. That’s what Musk wants,” she said. I even feel like I’m not.”

It was an effective place for advertising

Of course, not all marketers take this black-and-white view. Some marketers have new products to launch and movies to promote. In these cases, few places can spread the moment more than Twitter. But moments pass. When the moment passes, the advertisement disappears.

This is where Twitter’s problem lies. It’s a great place for the whirlwind of cultural happenings, but otherwise it’s not. It makes sense that after so many others left Twitter, companies like Microsoft, Patagonia and Universal Pictures remained. It is unknown at this time if they will continue to exist after the campaign is over. Either way, for them, the risk is minimal in whatever they do with a social network too big to ignore but too small to rely on.

According to eMarketer, Twitter’s U.S. ad revenue was $2.4 billion in 2021. Most of them seem to come from a handful of advertisers. Ad-tracking firm Pathmatics said the top 15 social network advertisers in the US spent $338.4 billion on ads in 2021.

“Our media team is going to each client and trying to figure out what’s right for them, but let’s not forget that there was very little advertising on Twitter in the first place,” said agency network’s Stagwell. said Mark Penn, Chairman and CEO of “Twitter’s advertising model has always been a challenge. It’s never been the most effective place to deploy.”

Whatever the future holds for Twitter, the current quagmire existed long before Mr. Musk cast a major shadow. Despite its broad cultural presence and quality audience, Twitter has struggled to build a profitable advertising business. The struggle is only going to get more difficult from now on.

[Original:Elon Musk’s Twitter takeover gives advertisers an easy out from the platform]

Seb Joseph, Krystal Scanlon, Michael Bürgi (translated by SI Japan, edited by Shohei Wakeshima)