Twitter hands out free ad spaces to chase brands back on platform

Twitter witnessed a decline of $44 billion in its ad business after Elon Musk took over the company. Thus, in a new incentive to lure brands back to Twitter, the social media platform has started to offer no-cost advertisements to brands.

Twitter has proposed to offer $250,000 worth of ad space for free, the Wall Street Journal reported. It has also promised $500,000 of free advertising space to brands that buy $500,000 of ad space. However, Twitter authorities have not provided any official comment on it.

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In recent years, advertisers have crowded Twitter during Super Bowl week to increase sales by marketing their products around the big game. Super Bowl is the biggest revenue annual day for Twitter, and ad makers might play on it this year.

Elon Musk's takeover of Twitter in late October followed financial turmoil for the social media company. Currently, the platform has found a new tactic to lure back many advertisers that leftafter the takeover due to Musk's content moderation policies.

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In November, Twitter faced a massive drop in revenue and lost around $4 million per day. Behemoths like Pfizer Inc., United Airlines, and Volkswagen have blocked their budgets for Twitter ads. It directly impacted Twitter's financial front as almost 90 per cent of Twitter's $5.1 billion revenue in 2021 came from advertisements.

Brands must use specific Twitter products, such as the company's most recent keyword-avoidance tool, to be eligible for the most recent incentive. This tool enables advertisers to list up to 1,000 keywords preventing their ads from appearing above or below tweets that contain those keywords.

However, Elon Musk expects Twitter to have a break-even cash flow in 2023. Before the business lowered expenses by firing thousands of employees, he said that Twitter was on track to have a $3 billion annual negative cash flow. The staff should be roughly 2,000 people instead of 8,000, he added.

(With inputs from agencies)

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