Elon Musk had to do something to lure advertisers to Twitter after an exodus since he acquired the social media platform. It seems he has a plan.
Twitter will offer advertisers incentives to boost their spending on the platform, according to emails sent by the company to ad agencies, first reported by Morning Brew.
Twitter also suspended Kanye West’s account again Friday after Musk said he violated the platform’s rule against incitement to violence. West’s account was reinstated at the end of October, though Musk said he played no role in that.
Advertising accounts for around 90% of Twitter’s revenue and the number of brands pulling ads from the platform has been growing since Musk bought the company at the end of October.
(MDLZ) and Audi are just some of the brands to suspend ads.
Musk said earlier this week that
(AAPL) has “mostly stopped” its advertising, too. The billionaire wrote an open letter to advertisers back in October but now a more tangible plan is emerging.
U.S. advertisers that spend $500,000 will reportedly receive a “100% value add”—essentially being given impressions on the platform worth the amount they spent—up to a $1 million cap. Those who book $350,000 incremental spending will get a 50% value add, while a $200,000 spend secures a 25% value add, according to multiple reports.
Twitter didn’t reply to Barron’s request for comment early on the day.
Brands in other parts of the world including the U.K. and Japan have been offered different levels of incentives. However, the offers are only set to last until the end of December, according to reports.
Perhaps the importance of keeping advertisers on side, and on the platform, is beginning to hit home. After a series of tweets criticizing Apple, Musk met with the tech giant’s CEO Tim Cook earlier this week. The
CEO said the pair “resolved a misunderstanding about Twitter potentially being removed from the App Store.”
He will be keen for Apple to restart its Twitter advertising, too.
Write to Callum Keown at email@example.com