Micro-blogging platform Twitter in a bid to woo brands to advertise on the platform has re-strategized a new way to achieve that.
The social media company is set to offer free ads to brands to make them run advertisements on the platform, following the deterioration of its ads business.
According to a recent email, the social media platform is offering advertisers ad spending up to $250,000.
Companies that spend more than $500,000 on Twitter ads will receive a 100% match on their spending in equivalent marketing value up to $1 million. A Twitter executive described it as the most aggressive ads spend incentive ever.
Twitter has continued to witness a significant decline in advertising revenue as the company struggles to retain advertisers following Musk’s takeover of the company.
Recall that during Musk’s takeover of the company last year October, a report disclosed that in the 25 days since he became the company’s CEO, half of its top advertisers stopped advertising on the platform.
These advertisers expressed concern over Musk’s content moderation on the platform which they feel will affect their advertisement on the platform.
Reports disclose that these companies since 2020 have accounted for nearly $2 billion in advertising revenue.
Also, a coalition of civil rights groups escalated a call for brands to pause on ads spending on the platform in the light of inflammatory rhetoric and problematic policy changes from Musk.
This coalition group sent letters to giant companies such as Amazon, Procter $ Gamble, Disney, Capital One, Coca-Cola, etc to voice their concerns about what the group perceived as increased hate and offensive speech on the platform.
Investors King understands that Twitter gets over 90% of its revenue from advertising. Though Musk has implemented other revenue streams for the social media company such as payment for blue verification Tick, Ads remain the core component of Twitter’s business.
The company posted ads revenue of $1.18 billion in the second quarter of 2022.