Elon Musk’s social media business has been losing money on advertising. The social media behemoth Twitter has been losing advertisers ever since Elon Musk paid $44 billion to acquire it. According to The Wall Street Journal, Twitter is attempting to boost revenue by providing free ad space. According to emails the WSJ reviewed, Twitter stated that it would match advertising expenditures up to a total of $250,000 as long as the entire $500,000 worth of advertisements ran by the end of February.
Although Twitter has not yet responded, the agreement fits in with recent initiatives to increase ad revenue on the network. This is more from the WSJ. The company’s most recent initiative to encourage brand spending on its platform is the incentives. Twitter has provided advertisers with $500,000 in free advertising in exchange for at least a $500,000 investment.
The incentive, according to ad buyers, might be used to pay for promoted tweets that appear during Super Bowl week, a crucial selling time for Twitter. Recent years have seen an increase in the number of advertisers using Twitter during the Super Bowl to promote their big game marketing initiatives. According to the Journal, Twitter’s greatest income day of the year is the Super Bowl.
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Shortly after Musk took over, Twitter started to lose money. As early as November, Musk claimed that the business was losing millions of dollars per day because advertisers had expressed concern about the way the site was moderated and the type of information Musk may permit to be posted there. Businesses interested in participating in the new fund-matching offer will need to use Twitter’s tools, which include one that lets advertisers create keyword lists that act as a barrier between ads and offensive tweets. Getting advertisers back is crucial, as the Wall Street Journal points out, given that the majority of Twitter’s $5.1 billion in income in 2021 came from advertisements.