17-6-2023 (SAN FRANCISCO) Twitter, the social media company owned by Elon Musk, plans to rejuvenate its business beyond digital advertising by prioritizing video, creator collaborations, and commerce partnerships, according to an investor presentation reviewed by Reuters. The presentation, which featured Musk and the new Chief Executive Linda Yaccarino, highlighted Twitter’s efforts to explore potential partnerships with political and entertainment figures, payments services, and news and media publishers.
Yaccarino, who assumed the role of CEO on June 5, addressed Twitter investors during a private call where she revealed the company’s early conversations with various entities, as disclosed by an anonymous source familiar with the matter. This presentation marked Yaccarino’s first opportunity to engage directly with the company’s investors.
Following Musk’s acquisition of Twitter in October, the social media platform faced a tumultuous period characterized by layoffs, criticism over content moderation practices, and the departure of numerous advertisers who were concerned about their ads appearing alongside inappropriate content.
Musk’s decision to appoint Yaccarino, a seasoned advertising executive renowned for her work in modernizing ad sales at NBCUniversal, signaled that digital advertising would remain a priority for Twitter.
Notably, ad-buying firms initially advised their clients to pause ad spending on Twitter after Musk’s takeover. However, these recommendations have since been reversed, and major advertising holding companies no longer suggest a pause, as indicated by a slide shown during the presentation. Leading brands such as Warner Bros, Mondelez, McDonald’s, and Walmart have resumed advertising on Twitter after an initial hiatus.
According to the source, Yaccarino informed investors that ad spending in several advertiser categories has increased by at least 40% year-over-year, particularly in health, consumer packaged goods, and financial services.
When it comes to Twitter’s future plans, the company has undergone significant transformations under Musk’s leadership. It changed its business name to X Corp., reflecting Musk’s vision of creating a “super app” similar to China’s WeChat, which would encompass digital payments and other services. Twitter is presently in the process of applying for “money transmitter licenses” in all 50 US states, as indicated in one of the presentation slides.
Twitter has also been focusing on expanding its video content offerings on the platform. Vertical video content now accounts for more than 10% of the time spent on Twitter, according to another slide from the presentation. Recently, Tucker Carlson, a former Fox News host, launched a new show called “Tucker on Twitter” on the platform. Twitter envisions the potential for ad sales and sponsorships in conjunction with videos from Carlson and other content creators.
The source further revealed that Yaccarino expressed positive feedback from Musk regarding her ideas, and their working relationship has started off on a promising note.
