Should Your Brand Still Be On Twitter?
We've spoken about Elon Musk and Twitter a lot recently. Honestly, Musk himself is sick of the coverage he's getting. From changing the already defunct verification policy to sacking half of his staff without genuine cause. The man has been a problematic CEO and owner. Sure, there may be a light at the end of the tunnel (following a Twitter Poll to determine his future at the company), but no change is on the horizon for now.
This brings us to the question, should your brand be on Twitter?
There was once a time when I'd considered Twitter a virtual platform for businesses looking to promote products/services and connect with customers. But as each news story broke, I felt less confident in that belief.
I know I'm not alone in the concern either. Within one week, the (now cancelled) luxury fashion brand Balenciaga deleted its Twitter account. Eli Lilly withdrew its advertising on Twitter after a fake report tweeted that it was making git'sgit's insulin products accessible. The tweet caused Eli Lilly stock to drop and sparked new conversations about the ridiculous price of insulin in the states.
The world's biggest media buyer, Group M, started to warn brands that advertising on Twitter was an incredibly "high risk". To those not in the know, Group M works with brands like Google, Ford, and Coca-cola on buying ads across media services, representing 1 in 3 ads globally.
The arc of Twitter'sTwitter's transformation since Elon Musk bought the company on October 27 is a cautionary tale of how hubris and quick decisions can undermine a company's core business — in this case, advertising. Musk wants to boost the service's subscription revenue, but Twitter nevertheless relies on advertising for 90% of its sales. And so far, his leadership is risking Twitter'sTwitter's $4.5 billion annual advertising revenue from big brand names like Eli Lilly, Oreo and General Motors.
Several significant advertisers have paused or pulled their revenue from Twitter amid confusion over Musk's plans for the infamous blue check marks -which once showed an account as verified - and a rise in heat speech.
Musk: blames activists for destroying "free speech"
Musk, meanwhile, is blaming activists who he says are scaring off advertisers as he moves fast to put his imprint on the social media platform.
"Extremely messed up! They're trying to destroy free speech in America," Musk said in a November 4 tweet.
But brands are pulling back from Twitter due to concerns about damage to their credibility.
Musk’s whiplash business decisions also worry brands that prize stability and predictability. As for free speech, the First Amendment only applies to the government's control over speech. Private businesses are at liberty to decide how and where to spend their advertising dollars.
"Elon has nobody to blame but himself at the moment," noted Yaverbaum. "The rules change daily, and that's not what brands want."
Group M, the world's largest media buyer, said in an internal document that several things would have to change at Twitter to reverse its "high risk" label, according to Digiday, which published the paper. It noted that Twitter would need to rehire IT security, privacy, trust and safety senior staff, as well as establish internal checks and balances.
It also wants "full transparency" about development plans for content moderation, community guidelines and anything that impacts brand safety or user security. It also wants to commit to content moderation and enforce rules against fake accounts.
It's not too late for Twitter to stabilize itself and convince advertisers to return, Yaverbaum noted. "There are a lot of people just holding on because they love Twitter," he said.
To conclude,
Should your brand be on Twitter? Whilst these changes are random, problematic, and PR-worthy, the only real risk your business has on the platforms is scammers. If the insulin scandal happened to your business, would you want to defend yourself on Twitter? Or would you prefer the “out of sight, out of mind” approach?
Personally I prefer the latter, you can say your peace and still give your customers an easy way to communicate with you. But I permanently advise against paid advertising on the platform. Unless you want to spend millions on brand awareness that is.
Things might change, new policies might come to light that could impact your business revenue. But until they do happen, you’re safe.