Twitter is set to compensate its verified content creators for advertisements displayed in their replies within the coming weeks. Elon Musk, who took ownership of the social media platform in October 2022, made the initial payment of $5 million, but has outlined a set of conditions for eligibility.
What’s the update: According to Musk’s new regulations, verified creators will receive monetary compensation for advertisements in their replies. Additionally, the billionaire specified that “only ads served to verified users count”.
Why is this significant: This announcement opens up a new potential revenue stream for advertisers on Twitter.
Why now: Musk’s announcement coincides with the arrival of advertising expert Linda Yaccarino as the new CEO of Twitter. Her leadership is expected to restore confidence in the platform, following a drastic decline in ad revenue resulting from Musk’s restructuring decisions, which included laying off nearly half of Twitter’s 7,500-strong workforce.
Concerns regarding ad placement led to a significant decrease in ad spend, with research from Sensor Tower and Insider Intelligence indicating a 20% year-on-year decline.
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What does Twitter have to say? Musk tweeted:
“In a few weeks, X/Twitter will start paying creators for ads served in their replies. First block payment totals $5M. Note, the creator must be verified and only ads served to verified users count.”
In March, Musk expressed optimism for the future of Twitter’s ad sales, despite the platform’s recent challenges. He shared his goal of raising the current rate of 5 to 6 cents per hour of user attention to 15 cents or higher. The billionaire plans to achieve this by delivering more relevant and timely ads.
Further information is expected to be released soon.
Timeline:
October 2022 – Musk acquires Twitter for approximately $44 billion following months of negotiations.
October 2022 – Reports indicate that numerous top executives at Twitter, including CEO Parag Agrawal, chief financial officer Ned Segal, chief legal officer Vijaya Gadde, and general counsel Sam Edgett, are laid off.
November 2022 – Musk initiates the largest staff layoff in Twitter’s history, discussing the dismissal of almost half of its global workforce.
November 2022 – Twitter transitions its blue tick verification system into a paid service at a cost of $8 per month. Notable figures like Beyonce and Cristiano Ronaldo lose their verified status overnight, leading to a surge in fake profiles impersonating public figures.
February 2023 – Twitter experiences a 20% decline in post frequency.
April 2023 – Microsoft’s Ad platform removes Twitter from its platform.
April 2023 – Musk enforces mandatory verification for advertisers.
May 2023 – Linda Yaccarino is announced as Twitter’s new CEO.
June 2023 – Twitter’s ad revenue in the US drops by 59%.
June 2023 – Musk announces that Twitter will begin compensating verified content creators for ads displayed in their replies.
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