Big-name companies are leaving Twitter at the speed of one of Elon Musk's SpaceX rockets.
Under its new owner, the social media giant is reeling.
Revenue is down, and embarrassment is up.
For example, an internal memo at the advertising agency Omnicom Media Group discussing its relationship with Twitter leaked to the media.
The message warned of possible damage to their clients' images if they advertise on Twitter. Its clients include household names McDonald's and Apple.
Has this been on the horizon for some time, however?
Is the new management to be blamed for the dire state the company is in or is this down to years of bad decisions and a lack of vision in the company?
The online debate has been focused on those and questions like:
- Is newly minted Twitter CEO Musk Mush doing the right things?
- Has his hand been forced?
- Are the layoffs justified?
Since everyone is talking about the above, I will not.
What I'd like to explore is the reason advertisers abandoning Twitter.
Why has Twitter become such a pariah to well-known companies? What does Twitter's situation mean for you and your business? And is this a good time to rush into the Twitter advertising void left by huge conglomerates?
Why Have Some Companies Sent Their Final Tweets?
Omnicom media is concerned about the effectiveness of Twitter's new verification program called Twitter Blue.
The monthly $7.99 subscription service is supposed to differentiate real Twitter accounts from fakes. However, impostors have successfully joined, pretending to be recognizable brands and celebrities.
For example, a scam artist pretending to be pharmaceutical giant Eli Lilly posted that it was giving away free insulin. The legitimate Eli Lilly was forced to tweet an apology and put its PR machine in high gear to calm disappointed consumers.
That makes it easy to understand why rival pharmaceutical company Pfizer also suspended its advertising there.
The memo recommends taking a hiatus from Twitter until its security features can reliably identify fraud. Omnicom's move comes after Interpublic Group issued a similar advisory for its clients.
Meanwhile, other major brands like food giant General Mills and car manufacturers Volkswagen and General Motors have taken a pause from Twitter.
Chipotle Mexican Grill Inc. and Mondelez International Inc., the owner of popular snack foods such as Oreos, have halted their Twitter ad campaigns.
United Airlines also took off. And recently, ad giant IPG advised its clients to stop advertising on Twitter.
Musk Sent the Wrong Signal
Before purchasing the company, Musk had repeatedly spoken against Twitter's former policy banning users who posted hateful and dangerous propaganda. But no one was certain what that would mean once Musk took over.
This is not content discussing if he was right to do so or not but that has definitely been one of the moves that triggered the exodus.
Some brands believe that the answer is found in Musk's massive layoffs of nearly half the staff. Notable among those dismissed were core members of the group within the company responsible for monitoring and screening hate speech.
So, brands are not only worried about impersonators, but they're also concerned about their image. They don't want their products linked to hate speech.
What Are Brands Doing With Their Twitter Budgets?
This is what I think.
Some business analysts believe that the big brands were looking for ways to save money. And the Twitter fiasco gives them a perfect rationale for tightening their purse strings.
There is also another question that arises.
What were they doing spending their money on Twitter in the first place?
We moved away from doing any Twitter advertising back in 2018.
Why? It's not the right platform to be pushing ads.
A big part of Twitter users will block you at first contact. Any sort of promotion on Twitter is frowned upon. There is an entire niche market that has developed over the years that focuses around blocking promoted tweets. Just Google “block promoted tweets”! What you'll find are chrome extensions, guides on how to block promoted twits, guides on how to block ACCOUNTS, apps you can use for free, premium apps, and a lot more.
Twitter users have been quite religious about keeping ads out of their faces.
On top of that, the adverting options on Twitter as an advertising medium have been below par for years.
So the question becomes.
Are lazy marketers using the ownership changes as an excuse to run away from a platform they should have not been spending years back?
Possibly. Some are for sure.
Other industry insiders say ad buyers need to spend their budget before the year's end to justify receiving the same or bigger budget for next year. Meanwhile, effective advertising influences a company's bottom line, so not using an advertising budget could cost more money in the long run.
If brands are not sitting on their advertising budgets, it means they've already committed them to other platforms. If so, Twitter could miss out on this round of spending.
Will Twitter Advertising Recover?
Is Twitter's current multi-headed crisis simply a hiccup under the new regime? After all, advertising on Facebook rebounded from a similar experience in 2020.
Nervous companies left because of the proliferation of hate speech on that platform. Yet, many of those businesses returned.
But ad experts say to avoid looking for a repeat with Twitter. Why?
Advertisers, in general, get more bang for their buck on platforms like Facebook, Linkedin, Google, Youtube, TikTok, and basically everywhere. The ROI was too tempting to continue to ignore. And Facebook attracts more small businesses than Twitter. So, the departure of a few big names didn't trigger the same level of concern.
A case in point is the reluctance of large companies, such as Verizon, to use Facebook in 2020 did not stop the platform from increasing its revenue. It brought in 20% more revenue than the previous year.
So, if advertisers don't return to Twitter, where will they go? They may turn to LinkedIn, Google, YouTube, TikTok or some other platform.
So, if advertisers don't return to Twitter, where will they go? They may turn to LinkedIn, Google, YouTube, TikTok or some other platform.
LinkedIn is unique among social media platforms because it doesn't aim to attract everyone like Twitter. It wants business leaders. That makes it an ideal place for you to be.
On LinkedIn, you're targeting people usually tucked away behind numerous gatekeepers. If you can get decision-makers to read about your product or service, you position yourself within striking distance of making a sale.
All serious online advertising campaigns have to consider using Google. The platform remains a primary way for the average person to perform research to find an answer to a pesky problem. And if your product or service answers that problem, you have a potential buyer.
The stability of Google versus the chaos of Twitter is noteworthy. There are no rumblings about the potential downfall of Google.
YouTube
The modern sensibility is why to read when you can watch a video. That includes ads.
You can drill down on the demographics to reach a narrow band of people with YouTube. And you can contact them in several ways.
For example, YouTube, as a subsidiary of Google, can find potential buyers according to recent events in their lives. A couple celebrating the arrival of a new puppy would be interested in your ads for pet products or a dog grooming service.
TikTok
This is the big one.
If you are living on a dying platform you sure as hell can't overlook the one that is exploding at the moment. You might initially dismiss it as nothing more than the digital playground of your teenage nieces and nephews, but give it another look.
For starters, the majority of its users are adults. And those users have made the platform a social media giant influencing digital marketing trends.
TikTok is also budget-friendly. You can hire a small team of professionals to produce an effective ad.
After all, the videos that go viral are often shot on ordinary mobile phones with available light.
Should You Use Twitter Advertising?
I would say it's an as good time as any. If you've read my rant you know by now how I feel about Twitter ads.
Civil rights groups want advertisers to prioritize morality over finances by boycotting Twitter.
Does that mean you will automatically be associated with fringe groups if you advertise on the platform?
Not necessarily. However, you'll need to weigh the possible long-term effects. Therefore, it could be to your advantage to get professional advertising guidance.
Should you expect to find underpriced attention on the platform? Possibly, yes!
Is that enough to decide to move in and try to exploit the void left by the exodus?
That is for you to decide and it will heavily depend on the type of business you are and the goals you are trying to achieve. My bet is, you still can do a lot better on other platforms.
What is our opinion? Regardless of the outcome of the present crisis, we don't recommend Twitter advertising as your first choice.
The digital landscape is expanding and so are your options. We think you should consider placing your ad budget elsewhere.
