Musk publicly questioned why Cook stopped advertising, Twitter is going to be broken
It is unknown whether the combination of the number one Internet celebrity Musk and the billion-level platform Twitter can make money, but it is certain that it will be more topical.
After the acquisition of series, layoffs, and discussions about the success or failure of new features, we ushered in the stories that Twitter and advertisers have to tell-and the representatives of these advertisers are still Apple.
Musk @ Cook: Why don't you advertise?
Musk and Apple may not have been very close.
As early as 7 years ago, Apple also fought a "digging battle" with Tesla. Apple waved a small gold hoe to attract engineers who grew in Tesla's vegetable fields. At that time, he directly opened the mic to ridicule that for Apple, building a car is logical, because it is finally a significant innovation, rather than making a new pencil or a bigger iPad.
They hired people we fired. We always jokingly call Apple the "Tesla Graveyard." If you can't stay at Tesla, go to work at Apple.
He has also criticized Apple’s in-app purchase policy more than once. Although Tesla does not allow in-app purchases, it does not prevent Musk from criticizing Apple’s 30% in-app purchase share. But all of this has a premise, that is, Apple has always had a plan to manufacture electric vehicles at that time, but now Apple has not sold cars publicly, and the possibility of becoming a Tesla competitor is getting smaller and smaller.
Apple, which is not a competitor of Tesla, is now the advertiser for Musk’s Twitter 2.0, which began to reduce or even cancel the budget, and is also the reviewer of Twitter’s future listing on the App Store.
Will Musk’s attitude towards Apple be better with the identity transfer? The answer is that it is better, but the good is limited, that is, there is less yin and yang.
Yoel Roth, Twitter's departed director of trust and safety, once broke the news that the app store's review of the content platform can easily affect the core business of the platform. And the 30% "Apple Tax" in-app purchase commission is enough to make the unprofitable Twitter feel painful. Musk's response to this was: "If there is no other choice, I will build my own replacement phone."
Musk doesn't necessarily make phones, but Apple has the ability to remove Twitter from the App Store. A day earlier, Musk tweeted: "Apple threatened to remove Twitter from the App Store, but wouldn't tell us why."
In response, Musk reposted Fortnite’s parody of the satirical ad video “1984” specially made for Apple, standing on a united front with Epic. At the same time, he also forwarded some content to popularize the fact that the App Store imposes a 30% "tax" on all in-app purchase services to more fans.
Of course, the most important thing is the question of the soul, "Apple has basically stopped advertising on Twitter. Do they hate freedom of speech in the United States (environment)?" Musk also asked Apple CEO Cook in the comment area and asked him what happened what.
Apple and Cook didn't respond, but Apple wasn't the only company Musk approached directly.
Muskra ad, this is not common
Musk probably didn't rely on advertisements to make a living.
Whether it's selling cars or working as a programmer, he has never personally gone out to advertise for the platform. This may have misunderstood ad sales for him, so after Robin Wheeler, who was in charge of Twitter's ad sales business, refused to fire more employees from the ad sales team, Master also laid off him.
The ad sales force was nearly wiped out, and the first to feel the inconvenience were advertisers who were advertising on Twitter.
According to foreign media reports , many advertising companies do not have any contact with Twitter. In recent weeks, there has been no communication between the two parties. Some advertising practitioners have confirmed that some brands cannot obtain data feedback from previous advertising campaigns. It is even difficult to carry out advertising marketing on Twitter because the Twitter advertising team is severely understaffed. .
But this is more like an uncontrollable chaos of layoffs. Musk himself wants to stabilize Twitter advertisers.
After the acquisition, Musk also went out of his way to reassure advertising agencies, telling them that “Twitter will not become a free-for-all hell.” Even in the subsequent conference call, Musk performed very well. Many executives of advertising agencies spoke highly of Musk, saying that Musk seemed to know more than Jack Dorsey, and he had already gone very deep. learned about the industry.
That good relationship ended with layoffs.
After the advertising sales team and trust security team were laid off, these advertising agencies also became the first responders. They began to give early warning to the brands they represented, reminding them that they could properly consider reducing their advertising investment on the Twitter platform .
That's why Apple has reduced its advertising on Twitter, which is also the suggestion of the agency Omnicom. It is Twitter's largest advertiser, spending $48 million on Twitter in the first quarter of this year alone.
As one of the world's largest advertising agencies, Omnicom has represented brands such as McDonald's, Apple and Pepsi, and its recommendations can affect many brands. In "Twitter's Ongoing Brand Safety Concerns" report, Omnicom advises clients to consider the impact of platform changes on ad performance and to pause.
There is evidence that brand safety risks have skyrocketed to levels that are unacceptable to most of our brand customers.
We recommend a short-term suspension of activity on Twitter until the platform can demonstrate that it has regained control of the platform environment to an acceptable degree.
We formally ask Twitter to assure that these issues will not in any way impact compliance processes, operations, products, brand safety, and customer advertising on the platform. But it may be that Twitter executives in these departments have left, and Twitter has not been able to give these guarantees.
For advertising agencies, this is their duty.
But for Musk, it was a bolt from the blue. You must know that advertising is the main source of Twitter, and the further reduction of unprofitable Twitter revenue is not acceptable. Musk signed a debt of 13 billion US dollars in order to buy Twitter, and he has to pay 1 billion in interest every year. It is really important for him to retain advertisers.
So he also took action. A senior industry insider said that Musk directly asked some brand CEOs who reduced advertising why they reduced their advertising. This unexpected approach has also led many brands to choose to minimize their spending, rather than eliminate their Twitter advertising budget completely, in order to avoid a public confrontation with Musk.
Otherwise, you are the next CEO of Aite in Musk's comment area.
Social platforms rely on advertising
When Musk laughed at Apple in 2015, it was like a boomerang. Seven years later, it stuck in his body. At that time, Musk was saying that cars are very complicated, and this field is not the same as before.
Cars are complex compared to phones or smart watches. You can't just find a supplier like Foxconn and tell him to build me a car.
Now Musk may also know that social platforms are also complicated. You can't just find enough good engineers to write code, and you can have a good enough platform. User behavior and advertising behavior are new knowledge for Twitter's new boss. He also faces problems including insufficient manpower and excessive public attention.
In the circle of social platforms, which is increasingly short of fresh blood, most people will think that Musk is a "breaker", and many of his ideas will be different from the original social platforms. There are already many signs, but at present, the ideal profit model of Musk’s Twitter 2.0 is also very different-Musk expects half of the revenue to come from user subscription fees.
It's hard.
For comparison with similar products, Weibo’s advertising and marketing revenue in the third quarter was US$393.4 million, with a total revenue of US$453.6 million, and advertising revenue accounted for 86.73%; Meta’s advertising business revenue in the second quarter was US$28.152 billion, with a total The revenue was 28.822 billion U.S. dollars, and advertising revenue accounted for 97.68%; while Twitter 1.0’s advertising business revenue in the second quarter was 1.08 billion U.S. dollars, with a total revenue of 1.18 billion U.S. dollars, and advertising revenue accounted for 91.53%.
Take Twitter Blue’s $8 subscription service as an example. User subscriptions require a monthly revenue of nearly 200 million to reach Musk’s goal. This requires 25 million user subscriptions—more than 10% of Twitter’s daily active users in the second quarter of this year. , is not an easy goal to achieve.
In the case that Twitter Blue is not yet on the shelves and its ability to attract money is unknown, Twitter has to rely on advertising. At least in the years since the emergence of social platforms, advertising is still the most effective way to monetize social platforms with billions of users.
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