Twitter plans to focus on video, creator and commerce partnerships to reinvigorate the social media company’s business beyond digital advertising, according to an investor presentation by owner Elon Musk and new chief executive Linda Yaccarino that was reviewed by Reuters.
Yaccarino, who began as CEO on June 5, told Twitter investors Thursday that the company is in initial discussions with political and entertainment figures, payment services, and news and media publishers about possible partnerships, a source said. familiar with the matter, who spoke on condition of anonymity to discuss a call from a private investor.
The presentation was the first time Yaccarino had addressed the company’s investors, the source said.
After Musk acquired Twitter in October, the social media company faced months of chaos, including layoffs of thousands of employees, criticism over content moderation, and an exodus of many advertisers who didn’t want their ads to appear alongside inappropriate content. .
The hiring of Yaccarino by Musk, a longtime advertising executive who modernized ad sales at the Comcast-owned news and entertainment conglomerate NBCUniversal, was a sign that digital ads remained a priority for Twitter.
Some ad-buying companies had recommended their clients stop ad spending on Twitter after the Musk acquisition. Those recommendations have been reversed, and none of the major ad companies currently recommend a pause, according to a slide shown during the presentation.
Well-known brands such as Warner Bros, Mondelez, McDonald’s and Walmart have resumed advertising on Twitter after initial breaks, according to the slide.
Yaccarino told investors that ad spending across several advertiser categories is now up at least 40% year-over-year, including healthcare, consumer packaged goods and financial services, the source said.
A Twitter executive declined to comment.
Video and Commerce
Under Musk, Twitter changed its business name to X, reflecting the billionaire’s vision of creating a “super app” like China’s WeChat, which he said would include digital payments and other services.
Twitter is applying for “money transmitter licenses” in all 50 US states, according to a slide in the presentation.
The company has also been focused on increasing video content on the platform. Vertical video now accounts for more than 10 percent of time spent on Twitter, another slide read.
Former Fox News host Tucker Carlson launched a new show earlier this month on the platform called “Tucker on Twitter.”
Twitter envisions it could sell ads and endorsements along with videos from Carlson and other content creators, the source said.
Yaccarino also told colleagues in recent days that Musk expressed strong support for his ideas and that the working relationship is off to a positive start, the source added.
© Thomson Reuters 2023
