Elon Musk advises companies to increase advertising on Twitter/X to maintain their verified status, and he is also reducing the price.

Elon Musk advises companies to increase advertising on Twitter/X to maintain their verified status, and he is also reducing the price.

The Challenging Present of X: Elon Musk’s Efforts to Save Twitter

Elon Musk, known for his innovative companies and controversial actions, has taken over Twitter, a platform that has been marred by financial difficulties and declining ad revenue. Despite drastic measures like laying off employees and ignoring bills and rent, Musk’s company, X, continues to bleed cash. To sustain his grand vision of transforming Twitter into an everything app to rival China’s WeChat, Musk’s first order of business is to lure advertisers back to the platform.

Courting Advertisers with Discounts

It seems Musk is willing to break his own opposition to spending money on ads. To entice companies, X is now offering significant discounts on ad placements. According to a report by the Wall Street Journal, companies can receive up to a 50% cost reduction for certain new bookings made. This limited-time offer aims to help advertisers reach their target audience during crucial moments on Twitter. However, it appears Musk’s discount strategy might be a recurring theme, as a similar offer was made during this year’s Super Bowl.

To further encourage advertisers, Musk has devised a unique form of motivation. In an email seen by the WSJ, X warns that companies must meet specific spending thresholds to retain their gold-colored verification badge. Failing to spend at least $1,000 over the previous 30 days, or $6,000 over the past 180 days, would result in losing this coveted badge. It’s a clever way to push firms to open up their pocketbooks and invest in advertising on Twitter.

Problems at Rival Snapchat as a Convenient Alibi

While Musk’s efforts are commendable, it’s essential to address the challenges that X is facing. Musk’s acquisition of Twitter has resulted in significant changes, making the platform scarcely recognizable from its origins as a microblogging service founded by Jack Dorsey 17 years ago. Musk’s personal politics and impulsive rule-making have contributed to unpredictability, further alienating advertisers seeking stability for their investments.

However, Musk finds solace in the struggles of Evan Spiegel’s Snapchat. This popular social media platform, once known for sexting and quirky filters, is also facing commercial difficulties. Its parent company, Snap, recently revealed a second disappointing sales quarter, putting pressure on the stock. This parallel adversity provides Musk with the alibi that X is not the only social media platform grappling with financial challenges.

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Musk’s Bold Predictions and Cautious Companies

Elon Musk, known for his bold predictions and entrepreneurial successes, remains confident in X’s future prospects. He boldly declares that X will become the most valuable brand on Earth. However, this statement is met with mixed enthusiasm, as Tesla fans fear that their beloved company might take a backseat to Musk’s newest venture.

Despite Musk’s optimism, companies are understandably cautious. Twitter’s tumultuous present, characterized by financial difficulties and frequent rule changes, triggers concerns about the predictability of their investments. Musk’s claims of record user engagement on the platform, while difficult to verify, are met with skepticism. The platform’s own engineers at Tesla have admitted under oath that they were instructed to doctor a key promotional video, raising questions about the credibility of these engagement metrics.

While the future of X, the revamped Twitter, holds the promise of success, the present remains an arduous challenge. Elon Musk, a maverick in the tech industry, is diligently working to counter the company’s financial struggles and regain advertiser trust. With discounts, spending incentives, and ambitious plans, Musk is determined to make X thrive and fulfill his vision of transforming Twitter into a global powerhouse. Only time will tell if his efforts will restore the glory days of Twitter or pave the way for a new era in social media.