Twitter’s largest advertising buyer, GroupM, says the platform is no longer a “risky” platform for them. The edge (through FT) reports.
Like any other social platform, Twitter relies on advertising as its primary source of revenue. Despite Elon Musk’s efforts to diversify Twitter’s revenue streams by expanding Twitter Blue benefits, advertising remains the company’s most prolific source of money.
With several controversies surrounding Twitter following the Musk acquisition, some feared that advertisers would stop trusting the platform. GroupM, which happens to be the biggest ad buyer on the platform, first labeled Twitter as a “risky” ad platform last November. However, the agency is now “cautiously optimistic” about Twitter’s new leadership.
GroupM continues to buy ads on Twitter
The Financial Times reports that appointing a new leadership for Twitter and reducing the amount of malicious content on the platform has convinced GroupM to continue buying ads on the platform. The large number of verified users on the platform posing as high-profile accounts and laying off thousands of employees was first cited as the main reason for GroupM’s uncertainty.
In addition to GroupM, other agencies such as IPG and Omnicom Media Group also stopped buying Twitter ads for similar reasons. However, as Twitter appoints a new CEO and becomes more regulated, advertisers will tend to buy ads.
GroupM says it is working with Twitter to improve “brand safety” and prevent ads from appearing next to malicious content. The agency declined to comment further on the matter.
Elon Musk recently appointed former NBCUniversal head of advertising, Linda Yaccarino, as Twitter’s new CEO. Musk said Yaccarino would focus on business operations while continuing to focus on product development and technology. Appointing an ad executive as Twitter’s new CEO could boost advertisers’ confidence and convince them to keep putting money into buying ads.