Clearly Elon Musk’s F-bomb laced tirade has had significant knock on effects. It seems to have accelerated the departure of advertisers from Twitter. Which I did predict here:
What’s clear from this debacle is that Elon completely off his rocker. And this will simply accelerate the departure of advertisers from Twitter. I wonder if Elon will start caring once Twitter is in critical condition with no hope of recovery? By the time he does, if he actually does care, it may be too late.
According to this story, the departures likely have started:
The Tesla chief also acknowledged that an extended boycott by advertisers could bankrupt X, formerly Twitter, but suggested that the public would blame the brands and not him for a potential collapse.
However, Insider Intelligence analyst Jasmine Enberg said: “If anyone is killing X, it’s Elon Musk – not advertisers.”
“Should X collapse, an autopsy would reveal a series of platform policy decisions, staffing cuts, tweets and antagonistic comments by Musk that have driven away X’s primary source of revenue,” Enberg said.
An executive at a major global ad-buying firm, who declined to be named, said only one major client was continuing to advertise on X.
“(Musk) seems to be hell bent on destroying the platform,” the executive said.
And:
“We believe there is a risk that more companies will stop advertising on X; at least on a short-term basis,” D.A. Davidson & Co analyst Tom Forte said.
“It is fair to say this makes the company’s subscription efforts more important and potentially means it may need more than half its revenue to come from subscriptions,” he said.
So how is Elon going to square this circle? The Financial Times is reporting that X is now going to be focusing on smaller businesses. The story is paywalled, but a TL:DR is available on The Verge with the key point from the article. At least from a Twitter perspective:
‘Small and medium businesses are a very significant engine that we have definitely underplayed for a long time,’ the company told the Financial Times. ‘It [was] always part of the plan — now we will go even further with it.’
Here’s the problem with that strategy. I don’t see how getting a bunch of small and medium sized businesses on board will make up the revenue shortfall of a Disney or IBM, or Apple individually, never mind all three of those companies combined. This seems more like a Hail Mary more than a real strategy that could produce real revenue. And given the fact that subscriptions aren’t exactly raking in the cash for Twitter, that means only one thing. Which is Elon has doomed Twitter to a slow and painful death. And his latest stunt has accelerated the death of the platform. Anything he does now is simply delaying the inevitable. There’s just no denying it at this point.
Congratulations Elon. You’ve proven how bad you are at running a company.
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This entry was posted on December 1, 2023 at 10:47 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed.
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Elon Musk Gets Desperate When It Comes To Advertisers On Twitter
Clearly Elon Musk’s F-bomb laced tirade has had significant knock on effects. It seems to have accelerated the departure of advertisers from Twitter. Which I did predict here:
What’s clear from this debacle is that Elon completely off his rocker. And this will simply accelerate the departure of advertisers from Twitter. I wonder if Elon will start caring once Twitter is in critical condition with no hope of recovery? By the time he does, if he actually does care, it may be too late.
According to this story, the departures likely have started:
The Tesla chief also acknowledged that an extended boycott by advertisers could bankrupt X, formerly Twitter, but suggested that the public would blame the brands and not him for a potential collapse.
However, Insider Intelligence analyst Jasmine Enberg said: “If anyone is killing X, it’s Elon Musk – not advertisers.”
“Should X collapse, an autopsy would reveal a series of platform policy decisions, staffing cuts, tweets and antagonistic comments by Musk that have driven away X’s primary source of revenue,” Enberg said.
An executive at a major global ad-buying firm, who declined to be named, said only one major client was continuing to advertise on X.
“(Musk) seems to be hell bent on destroying the platform,” the executive said.
And:
“We believe there is a risk that more companies will stop advertising on X; at least on a short-term basis,” D.A. Davidson & Co analyst Tom Forte said.
“It is fair to say this makes the company’s subscription efforts more important and potentially means it may need more than half its revenue to come from subscriptions,” he said.
So how is Elon going to square this circle? The Financial Times is reporting that X is now going to be focusing on smaller businesses. The story is paywalled, but a TL:DR is available on The Verge with the key point from the article. At least from a Twitter perspective:
‘Small and medium businesses are a very significant engine that we have definitely underplayed for a long time,’ the company told the Financial Times. ‘It [was] always part of the plan — now we will go even further with it.’
Here’s the problem with that strategy. I don’t see how getting a bunch of small and medium sized businesses on board will make up the revenue shortfall of a Disney or IBM, or Apple individually, never mind all three of those companies combined. This seems more like a Hail Mary more than a real strategy that could produce real revenue. And given the fact that subscriptions aren’t exactly raking in the cash for Twitter, that means only one thing. Which is Elon has doomed Twitter to a slow and painful death. And his latest stunt has accelerated the death of the platform. Anything he does now is simply delaying the inevitable. There’s just no denying it at this point.
Congratulations Elon. You’ve proven how bad you are at running a company.
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This entry was posted on December 1, 2023 at 10:47 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.