Twitter biggest ad buyer, GroupM, says this platform is no longer a “high-risk” platform for them, The Verge (via FT) reports.
Just like any other social platform, Twitter relies on advertising as its primary revenue source. Despite Elon Musk’s efforts to diversify Twitter revenue streams by expanding Twitter Blue perks, advertising remains the company’s most prolific money-making source.
With different controversies around Twitter following Musk’s takeover, some were worried that advertisers might not trust the platform anymore. GroupM, which happens to be the greatest ad buyer on the platform, first labeled Twitter as a “high-risk” platform for advertising 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 harmful content on the platform convinced GroupM to continue buying ads on the platform. The high number of verified users on the platform that impersonate high-profile accounts and firing thousands of employees was first cited as the main reasons for GroupM’s incertitude.
Besides GroupM, other agencies like IPG and Omnicom Media Group also stopped buying Twitter ads for similar reasons. However, as Twitter appoints a new chief executive and becomes more regulated, advertisers will be inclined to buy ads.
GroupM says it’s working with Twitter to improve “brand safety” and prevent ads from showing up beside harmful content. The agency refused to comment further on the matter.
Elon Musk has recently appointed NBCUniversal’s former head of advertising, Linda Yaccarino, as the new CEO of Twitter. Musk said Yaccarino would focus on business operations while he stays focused on product development and technology. Appointing an advertising executive as the new CEO of Twitter could positively impact advertisers’ trust and convince them to continue putting money into buying ads.