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> These companies aren't making independent decisions on this. Here is how the system works. I don't think you have enough expertise on digital ads these days.
by summerlight 4y ago
> These companies aren't making independent decisions on this. Here is how the system works.
I don't think you have enough expertise on digital ads these days. Allocation and execution of advertising budget is a highly data driven process. Those activists cannot really make any dents if a platform can deliver consistent, predictable and high performances. But nowadays no one thinks the word "predictable" accurately describes the status quo of Twitter so many advertisers pulled their budget to avoid hassles.
Still the platform is supposed to be performing well thanks to how digital auction works. Big budgets are gone, less competitions on the auction so you're supposed to get more slots at lower costs, right? In this case, the loss should be minimal and advertisers will quickly return. But the problem is that its advertising platform is not working smoothly as before. Its ads frequency has increased significantly (1 per 5 tweets recently), which is a usual playbook for advertising networks when it needs to quickly cover significant performance loss. And Twitter was known to be one of the weakest advertising networks and it's even demonstrating a weaker performance.
Okay, it might not be that problem if Elon is willing to fix all the issues. And Elon is known to be a prominent hater of digital ads and has explicitly expressed that he wants to move the major revenue stream to other products (like Twitter Blue), so it's fairly natural to conclude that its investments on advertising will deteriorate even in the longer term. I don't see any reasons for advertisers to remain on platform. Stop blaming those "activists" or whatever you (and Elon) don't like. This is a conscious decision made by Elon, he just didn't know the consequence.
- memish 4y agoThe companies were advertising on Twitter, despite the relatively weak performance. They considered it worth the spend prior to activist pressure. If Twitter's ad performance was best in class, they would be less likely to fold. We seem to be in agreement about how this works?
- mhoad 4y agoI can see you seem to be one of the very passionate for Elon types but you are fundamentally misunderstanding WHY advertisers are leaving in such high numbers. I promise you it has nothing to do with “activist groups” and everything to do with erratic and unpredictable management that is scaring them away.
- summerlight 4y agoYou get the entire point wrong. Advertisers decided to allocate their budget to Twitter not because of its status quo, but its promise on improvements. In fact, there has been significant developments on Twitter advertising and many advertisers thinks it's worth to experiment with the platform. And not Elon decide to void that promise, so advertisers pulled their budget. It's pretty easy to pull their budget it's relatively smaller than other platforms while the risk is not yet fully assessed. This is so simple story, there is no place for so-called "activists" for the major role to play.