How Elon Buying Twitter Effects Twitter Ads

How Elon Buying Twitter Effects Twitter Ads

All he had to do was continue to increase the price, and Elon Musk found the mark where he could buy Twitter.

This gives the notion that everything is for sale in this world, especially for the single person who owns more value than many countries. Now that Musk had purchased this social media platform, the speculation and fear-mongering began. Elon shares his desire to make this platform one that embraces free speech and doesn’t ban or limit users because of a single Tweet or opinion. His willingness to turn Twitter into the virtual Town Hall of the internet might be far-fetched.

Fewer Regulations Could Leave Many Advertisers Wanting More

It’s not a secret that Musk wants to deregulate Twitter to allow it to be primarily an open forum for discussion. This sounds like a great idea, but some express fear that it will become a place where more extreme ideals are shared that could be toxic and harmful. Those who find other social media sites limiting their extremist opinions and views might turn to an Elon-owned Twitter to share their radical ideas. This could become a problem for the founder of Tesla and SpaceX.

Twitter Lags Behind Other Platforms

If Elon puts his efforts into Twitter, it could quickly become a platform that embraces innovation and forward-thinking. This is most likely what Musk would like for this platform to welcome and offer to the many users of this social media site. Twitter has been criticized for its toxic nature, most of this coming from brand managers trying to advertise on this platform. Recently, Twitter has fallen behind other sites for ad revenue. TikTok has more ad revenue this year than both Twitter and Snapchat combined.

Why Would Loosened Content Moderation Policies Impact Ad Dollars?

Advertisers search for the right audience. With a deregulated Twitter platform, this could be a problem. The audience on Twitter might not offer advertising companies the right mix. Many companies not only need to sell products and services but prove they adhere to a socially acceptable viewpoint that works for the majority while keeping minorities in mind. If Twitter attracts an extreme crowd, this could mean the wrong audience is present for most advertisers, which would drive ad revenue down instead of upward.

Expect Elon to Lift the Bans

Elon Musk is one of many people that have either been banned from specific social media platforms or had his Tweets used against him in a public forum. Its possible Musk will lift all bans and begin to develop an environment that welcomes free speech. Will this work? Can Twitter become a welcome and open Town Hall type of place where ideas are shared and discussed in an adult manner? If similar conversations and controversial topics that have been discussed on this platform and others are any indicators, that’s not likely to happen. This site could quickly become something similar to “mainstream Gab, ” an extremist site that welcomes mane users banned from Twitter.

Some Companies Will Advertise Heavily in the New Twitter

With Elon owning Twitter, some companies will spend a lot of money on Twitter ads to directly offer various products and services through this social media platform. These will typically be companies and industries that Musk has shown support and admiration for. Cryptocurrency is undoubtedly one category where we expect to see advertising revenues on Twitter soar to new heights. The new owner of this platform brings significant cache and the ability to move markets with a few words posted on this platform.

Tradition Goes Out the Window

Elon Mush shares a significant distaste for traditional advertising processes. This is clear through Tesla, which no longer has a public relations department as of 2020. This could be a problem for Twitter, which survives and thrives on advertising revenue. Does this mean that Twitter accounts will need to be paid bills in the future to allow the platform to receive money to survive while fewer advertisers spend money on this platform because of the distaste the owner has for traditional but proven marketing methods?

A Shakeup at Twitter Has Been on the Horizon

Last year, co-founder Jack Dorsey stepped down as CEO of Twitter. This move signaled the need for this company to receive a natural shake-up for something to change that would move it forward. If there’s one thing Elon owning Twitter can do for this company is to try new things, find ways to encourage more users to engage and participate in conversations, and experiment with this platform. Musk will gladly take a few risks and see what happens, if nothing else.

Maybe Advertising Will Grow?

The fear-mongering of Elon Musk purchasing this giant social media company could positively impact Twitter advertising. To bring more revenue into the mix to fund future endeavors, the deregulated Twitter might be where more advertisers place their ads to attract their next customers. This is as much of two sides of a coin as possible. Until ownership is officially transferred to Musk and he begins to implement new processes and programs, we won’t know exactly what changes will occur and how they will impact advertising on the platform.

Could There be a Slow Play?

While it’s easy to understand that Elon wants to make his new toy into everything he imagines it can be, he also understands how to make money. Deregulating Twitter entirely isn’t going to improve revenue streams or create a place where intelligent and open discussions take place. While he could loosen restrictions and offer something for advertisers to make them want to keep their ads on this platform, his history shows he will likely go to the extreme and back down slowly. Expect the future Twitter to be deregulated entirely but then offer a few changes as this free speech focus proves to be just a bit more costly than it should be.

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