Twitter to pay verified creators for ads in replies: Elon Musk 

Twitter to Introduce Payments for Verified Creators in Replies, Elon Musk Confirms

Twitter is set to launch a new initiative that will compensate verified content creators for ads in their replies, according to a tweet by CEO Elon Musk. The platform plans to allocate an initial payment block of around $5 million for this purpose. Musk emphasized that the creator must be verified, and only ads served to verified users will be eligible for payment. This move aims to incentivize creators and enhance the ad experience on the platform.

Leadership Changes and Advertising Challenges

The introduction of payments for verified creators comes at a time when Twitter is experiencing changes in its leadership. Linda Yaccarino, an advertising veteran from NBCUniversal, has recently been appointed as the CEO of Twitter. Her expertise in the advertising industry is expected to bring fresh insights and strategies to the platform.

Twitter has faced challenges in retaining advertisers since Elon Musk acquired the company last October. Concerns about ad placement arose after the company underwent significant layoffs. Advertisers became cautious about where their ads would appear on the platform. This caution led to a decline in advertising spending, with major advertisers like Coca-Cola, Jeep, Unilever, Merck, and Wells Fargo pausing their campaigns on Twitter. The platform suffered a loss of approximately $4.5 billion in advertising revenue as a result.

Efforts to Address Advertising Revenue Losses

To mitigate the advertising revenue losses, Elon Musk took several measures. This included running a 'fire sale' offer during the Super Bowl and participating in a brand safety campaign to reassure advertisers that their ads would not appear alongside unsafe or inappropriate content. Despite these efforts, the platform continued to face challenges in regaining advertiser confidence.

Changes in Twitter's Workforce

Since Musk's takeover, Twitter has undergone significant changes in its workforce. Approximately 75% of Twitter employees, including those with deep relationships in sales and partnerships, were either fired or left the company. Recently, Ella Irwin, the head of trust and safety, and A.J. Brown, the head of brand safety and ad quality, have also resigned from their positions.

Conclusion:

Twitter's new initiative to pay verified content creators for ads in their replies, along with the leadership changes and workforce transitions, reflects the platform's ongoing efforts to attract advertisers and rebuild its advertising revenue.

By compensating creators, Twitter aims to enhance the ad experience and generate more revenue. The appointment of Linda Yaccarino as CEO brings valuable expertise in the advertising industry, offering potential strategies for regaining advertiser trust and improving Twitter's overall performance.