Twitter to Reward Verified Creators with Ad Revenue in Replies; Musk Targets Revamp

Twitter to Reward Verified Creators with Ad Revenue in Replies; Musk Targets Revamp

Twitter to Reward Verified Creators with Ad Revenue in Replies; Musk Targets Revamp

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Twitter’s New Strategy: Rewarding Verified Creators with Ad Revenue in Replies

In a ground-breaking move, Elon Musk, who acquired Twitter in October 2022, recently announced that verified content creators will soon be eligible for ad revenue payments based on ads served in their replies. This bold initiative aims to breathe new life into the social media giant’s advertising ecosystem, following a period of dwindling ad revenue and extensive restructuring. The first block of payments will total a staggering $5 million.

Eligibility for Ad Revenue Payments

Musk’s announcement outlines key criteria for content creators to qualify for ad revenue payments. First and foremost, the creators must be verified users on the platform. Additionally, only ads served to other verified users will count towards this new ad revenue sharing initiative. This move further emphasizes Twitter’s focus on rewarding genuine, high-quality content creators and advertisers.

The Impact on Twitter’s Advertising Landscape

This new ad revenue-sharing model opens up an additional revenue stream for Twitter advertisers, who have found themselves facing challenges since Musk’s acquisition of the platform. Ad revenue took a significant hit due to a series of restructuring moves under Musk’s leadership, which led to the layoff of nearly 50% of Twitter’s global workforce.

Revamping Twitter with New CEO and Ad Revenue Strategies

To counter the declining ad revenue, advertising expert Linda Yaccarino has been appointed as Twitter’s new CEO. Yaccarino’s wealth of experience in the industry has the potential to restore trust and reinvigorate Twitter’s advertising landscape. Data from Sensor Tower and Insider Intelligence indicate a 20% year-on-year decline in ad spending – a trend that Musk aims to reverse by increasing Twitter’s ad revenue to 15 cents or more from the current 5-6 cents per user hour of attention.

A Quick Overview of Musk’s Twitter Acquisition and Its Aftermath

  • October 2022: Elon Musk acquires Twitter for around $44 billion.
  • October 2022: Numerous top executives, including CEO Parag Agrawal, are laid off.
  • November 2022: Musk begins negotiations to lay off almost half of Twitter’s global staff.
  • November 2022: Twitter starts charging $8/month for the blue tick verification, resulting in an influx of fake profiles.
  • February 2023: Twitter’s post frequency drops by 20%.
  • April 2023: Microsoft removes Twitter from its ad platform.
  • April 2023: Musk instates mandatory verification for advertisers.

Twitter’s transition under Musk’s ownership has not been a smooth ride, but the recent announcement regarding ad revenue sharing for verified content creators signals a willingness to adapt and evolve. With the appointment of Linda Yaccarino as CEO and novel strategies empowering genuine content creators, Twitter looks set to make a strong comeback in the advertising space. Ultimately, time will tell whether these efforts will succeed in revamping the platform and boosting user engagement for the years to come.

Casey Jones Avatar
Casey Jones
10 months ago

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