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HomeUncategorizedTwitter Offers Advertisers Generous Incentives After Many Marketers Left Platform

Twitter Offers Advertisers Generous Incentives After Many Marketers Left Platform

Twitter Inc. is offering advertisers incentives to increase their spending on the platform, according to people familiar with the matter, an effort to jump-start its business after

Elon Musk

‘s takeover prompted many companies to pull back.

Twitter offered advertisers incentives as generous as matching their ad spending, according to a company email to ad agencies viewed by The Wall Street Journal.

Twitter is facing pressure to lure back brands that quit the platform or reduced their spending since Mr. Musk acquired the company in late October. Advertisers have expressed concerns about Mr. Musk’s approach to content moderation and account suspensions, among other issues.

Under the new Twitter plan, advertisers who book at least $500,000 in incremental spending will qualify to have their spending matched with a “100% value add,” up to a $1 million cap, according to the email the Journal viewed. Smaller amounts of spending would qualify for a lower matching amount.

This offer is valid for advertising that runs before the end of the year, according to the people familiar with the matter.

Some details of Twitter’s incentive plans were tweeted by journalists for the newsletters Marketing Brew and Platformer.

Advertising makes up about 90% of Twitter’s revenue, and Mr. Musk has bemoaned the loss of advertising revenue. Many big brands including auto maker

General Motors Co.

, food company

General Mills Inc.,

Oreo maker

Mondelez International Inc.,

Volkswagen AG’s

Audi and pharmaceutical company

Pfizer Inc.

have paused their spending on Twitter in recent weeks.

Elon Musk has warned of dire financial challenges facing Twitter, the social-media company he took over for $44 billion in October. WSJ’s Mark Maurer explains how the company is trying to fix its finances and avoid a potential bankruptcy. Photo Illustration: Laura Kammermann

Twitter further alienated brands in November after the company added a paid verification feature to its subscription Twitter Blue. Users could pay a subscription fee to have a blue check mark appear next to their name. The check mark had traditionally indicated that a user had submitted proof of their identity to Twitter, but Twitter began letting paying users receive the check mark without submitting proof. Brands were left unnerved after a raft of users took advantage of the new feature to impersonate official brand accounts and tweet dangerous, reputation-damaging messages. Twitter paused the feature, but it has promised a relaunch with new safeguards.

Twitter has lost a lot of employees, particularly from its ad business, because of multiple rounds of layoffs, as well as firings and resignations. Twitter has parted ways with two heads of its ad business since Mr. Musk’s acquisition:

Sarah Personette

and Robin Wheeler.

Mr. Musk has made efforts to reassure advertisers—both publicly and privately—that the site will remain a safe place for brands. He has held conference calls with groups of advertising executives and has urged advertisers to publicly air their concerns by tweeting at him. He said he would delay the relaunch of paid verification until the danger of impersonation could be mitigated.

When Twitter relaunches paid verification, it will also launch color-coded check marks to distinguish verified accounts for companies and government officials from those for individuals.

On Monday, Mr. Musk publicly denounced iPhone maker

Apple Inc.,

alleging the company reduced its ad spending on Twitter and questioning the company’s motive for doing so. “Apple has mostly stopped advertising on Twitter. Do they hate free speech in America?” Mr. Musk tweeted.

Any rift with Apple appeared to be healed Wednesday, after Mr. Musk tweeted about having a “good conversation” with Apple Chief Executive

Tim Cook.

Write to Patience Haggin at patience.haggin@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the December 2, 2022, print edition as ‘Twitter Offers Perks to Lure Back Advertisers.’



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