Twitter to focus on video, commerce in business revamp: report
Twitter, the popular social media company owned by Elon Musk, has unveiled its plans to revitalize its business beyond digital advertising through a focus on video, creator, and commerce partnerships. In an investor presentation reviewed by Reuters, Musk and new CEO Linda Yaccarino shared their strategies to bring about a new era for the company.
Yaccarino, who took on the role of CEO on June 5, addressed Twitter investors in a private call, stating that the company is in early discussions with political and entertainment figures, payments services, and news and media publishers. This move signifies Twitter’s intention to diversify its revenue streams and explore alternative sources of income beyond advertising.
Ever since Musk acquired Twitter in October, the social media firm has faced a series of challenges, including layoffs, criticism over content moderation, and the departure of numerous advertisers due to concerns about their ads appearing next to inappropriate content. The appointment of Yaccarino, a seasoned advertising executive who revamped ad sales at NBCUniversal, indicated that digital advertising is still a top priority for Twitter.
During her presentation, Yaccarino revealed that Twitter is currently engaging in conversations with various industry figures, signaling an intention to collaborate and forge partnerships that can potentially benefit both parties. These discussions extend to political and entertainment figures, payments services, and news and media publishers.
After Musk’s acquisition of Twitter, several ad-buying firms advised their clients to pause ad spending on the platform. However, that recommendation has now been reversed, with no major advertising holding companies presently recommending a pause. Prominent brands such as Warner Bros, Mondelez, McDonald’s, and Walmart have resumed advertising on Twitter after their initially cautious approach, as stated in one of the presentation slides.
According to the source, Yaccarino informed investors that ad spending in several advertiser categories has experienced significant growth of at least 40% year-over-year. These categories include health, consumer packaged goods, and financial services. However, a Twitter executive declined to provide further comments on this matter.
Under Musk’s leadership, Twitter underwent a name change to X Corp., reflecting his vision of transforming the company into a “super app” similar to China’s WeChat. This transformation involves the incorporation of digital payments and other services. The presentation also revealed that Twitter is in the process of applying for “money transmitter licenses” in all 50 states, further underscoring its commitment to expanding its business beyond social media.
Moreover, Twitter has been actively focusing on growing its video content on the platform. According to another slide from the presentation, vertical video now accounts for over 10% of the time spent on Twitter. In a recent development, former Fox News host Tucker Carlson launched a new show called “Tucker on Twitter.” The platform envisions the potential to sell ads and sponsorships alongside videos from content creators like Carlson.
Yaccarino has expressed satisfaction with her working relationship with Musk. Sources report that Musk has shown strong support for her ideas, and the partnership is off to a positive start. As Twitter continues its efforts to reinvigorate its business, these recent moves symbolize the company’s determination to adapt and thrive in the ever-evolving social media landscape.
Report suggests Twitter’s business revamp to prioritize video and commerce
In an effort to revive its business beyond digital advertising, Twitter is planning to focus on video, creator, and commerce partnerships, according to an investor presentation by owner Elon Musk and new Chief Executive Linda Yaccarino. Yaccarino, who took over as CEO on June 5, revealed in a private investor call that the company is in early talks with political and entertainment figures, payments services, and news and media publishers. This presentation marked Yaccarino’s first time addressing the company’s investors. After Musk acquired Twitter in October, the social media platform faced a tumultuous period, including layoffs, criticism over content moderation, and a loss of advertisers due to concerns over inappropriate content. By hiring Yaccarino, a seasoned advertising executive who transformed ad sales at NBCUniversal, Musk is signaling that digital ads remain a priority for Twitter. Yaccarino informed investors that the company is currently in conversations with various figures and services, including political and entertainment figures, payments services, and news and media publishers. Ad-buying firms initially advised their clients to pause ad spending on Twitter after Musk’s takeover, but these recommendations have since been reversed, and major advertising holding companies are no longer suggesting a pause. Notable brands such as Warner Bros, Mondelez, McDonald’s, and Walmart have resumed advertising on Twitter. Yaccarino also revealed that ad spending in several advertiser categories has increased by at least 40% year-over-year, including health, consumer packaged goods, and financial services. Under Musk’s leadership, Twitter rebranded as X Corp., reflecting his vision of creating a “super app” like China’s WeChat, which would incorporate digital payments and other services. Twitter is currently seeking “money transmitter licenses” in all 50 states. The company has also been focusing on expanding its video content, with vertical videos now accounting for over 10% of time spent on the platform. Former Fox News host Tucker Carlson recently launched a new show on Twitter called “Tucker on Twitter,” and the company envisions the potential to sell ads and sponsorships alongside videos from Carlson and other content creators. It has been reported that Musk is expressing strong support for Yaccarino’s ideas, and their working relationship seems to be off to a positive start. Overall, Twitter is concentrating on these strategic initiatives to revitalize its business and ensure long-term success.