May 12, 2022
Advertisers have expressed high optimism about Twitter’s ad business which they believe will see a remarkable turnaround with Elon Musk’s ownership.
The shared optimism is playing out in two ways. First, some advertisers are hoping to extract better deals from a company undergoing a massive transition. Others are hoping to see Elon Musk deliver what Twitter has fallen short on which is a quicker launch of new products.
Pending Musk’s takeover, some ad agencies are already advising their clients to look at the possibility of doing business with Twitter.
An anonymous ad agency executive stated that they expect negotiations to strike lower ad prices on behalf of some clients to start in the coming months. They expect Twitter to be more flexible pending Musk’s takeover.
Initially, there were fears that Elon Musk coming onboard could disrupt or possibly eliminate Twitter’s ad income scheme. However, advertisers have been reassured that advertisements will continue to grow under Musk thanks to his pitch to investors.
Musk expects Twitter to reach 931 million users by 2028 from 229 million in the recent quarter. He projects ad revenue to more than double to $12 billion representing about 45% of its total revenue within that time frame.
The sources for this piece include an article in Reuters.
