Twitter’s owner Elon Musk and the newly appointed Chief Executive Linda Yaccarino have outlined plans to revitalise the social media company’s business beyond digital advertising, According to an investor presentation reviewed by Reuters. Yaccarino, who assumed her role on June 5, recently addressed Twitter investors, sharing insights into the company’s strategy. The presentation marked Yaccarino’s first interaction with the investor community.
In an effort to strengthen its position in the market, Twitter is engaging in early discussions with prominent figures in the political and entertainment spheres, as well as payments services, news outlets, and media publishers. These conversations centre around potential partnerships, signalling Twitter’s intent to diversify its offerings and explore new avenues for growth. While the source disclosing this information spoke on the condition of anonymity due to the private nature of the investor call, the details underscore Twitter’s commitment to forging impactful collaborations in various sectors.
Following Musk’s acquisition of Twitter in October, the social media platform endured a period of turmoil, including substantial layoffs, criticism regarding content moderation practices, and the departure of numerous advertisers concerned about their brand placement alongside inappropriate content.
Musk’s decision to hire Linda Yaccarino, a seasoned advertising executive who spearheaded ad sales modernisation at NBCUniversal—a Comcast-owned entertainment and news conglomerate—served as an indicator that digital advertising remains a key priority for Twitter.
Initially, some ad-buying firms recommended that their clients halt ad spending on Twitter after Musk’s takeover. However, according to a slide displayed during the presentation, these recommendations have since been rescinded, and major advertising holding companies no longer advise a pause. Notably, prominent brands such as Warner Bros, Mondelez, McDonald’s, and Walmart have resumed advertising on Twitter after temporary suspensions.
Yaccarino informed investors that ad spending has seen substantial growth year-over-year in several advertiser categories, including health, consumer packaged goods, and financial services. According to the Reuters source, spending in these areas has increased by at least 40 per cent. While a Twitter executive declined to comment on these matters, the statistics shared during the presentation point to a positive trend for the company.
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Video content has become a significant focus for Twitter under Musk’s leadership. The platform has witnessed a surge in the consumption of vertical video, accounting for over 10 per cent of total time spent on Twitter, as highlighted in another slide from the presentation. To leverage this trend, Twitter aims to collaborate with content creators, envisioning opportunities to sell ads and sponsorships alongside videos from popular personalities. Notably, former Fox News host Tucker Carlson recently launched a show on Twitter called “Tucker on Twitter,” exemplifying Twitter’s strategy to attract high-profile creators.
In line with Musk’s vision of transforming Twitter into a “super app” akin to China’s WeChat, the company has rebranded itself as X Corp. This shift reflects Musk’s ambition to incorporate digital payments and other services within the platform. A slide from the presentation revealed that Twitter is in the process of applying for “money transmitter licenses” across all 50 US states, signalling its intention to expand into the financial realm.
(With Reuters inputs)
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