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Elon Musk’s X Corp Tries to Woo Back Advertisers With Discounted Ad Prices

July 28, 2023
in Technology
Elon Musk’s X Corp Tries to Woo Back Advertisers With Discounted Ad Prices
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X Corp Tries to Woo Back Advertisers With Discounted Prices

In a desperate bid to win back advertisers, X Corp, the social media platform previously known as Twitter, is offering a 50% discount on certain ad formats in the US and the UK.

The reduced pricing will apply to the video advertisements displayed alongside a list of trending topics under the “Explore” tab on the platform.

However, incentives aren’t the only way X Corp is trying to get advertisers to spend money at a time when its revenue continues to be much lower than before. Musk has threatened to strip advertisers of their gold verification check marks unless they spend money by the 7th of August.

X Sent Out Emails With the Special Offer and a Threat

In emails sent out to advertisers, X has offered to cut back advertising costs by 50% for video ads running alongside the trending topics or any new bookings until the 31st of July. These ads allow advertisers to stay on top of the popular “Explore” section for 24 hours.

The goal of these discounts is to help our advertisers gain reach during crucial moments on Twitter such as the Women’s World Cup.X Corp e-mail to advertisers

Of course, this isn’t the first time that the company offered discounted ad prices in an effort to boost its revenues. Twitter offered huge incentives during the Super Bowl, which happens to be its biggest revenue generator.

The advertisers have been provided with a deadline of August 7th to spend the necessary amount.

However, the company’s desperation to reverse its losses is made evident by the threat to advertisers who have stopped spending.

X Corp sent out emails warning to brands that they would be losing their verified status on the platform unless they managed to meet certain spending requirements. The gold verification checkmarks authenticate that a handle really belongs to the brand it claims, helping prevent impersonation.

According to the announcement, gold-checked accounts that haven’t spent $1,000 in the last 30 days or $6,000 in the past 180 days will risk losing the verification checkmark.

The Discount Comes Shortly After Twitter’s Rebranding as X

Coincidentally, the company announced the discount not too long after its rebranding as X. Twitter’s iconic blue bird logo was replaced by the new X logo last weekend, with Elon Musk announcing that X.com now pointed to Twitter.com.

The rebranding resulted in major backlash from users and influencers on the platform, many of whom threatened to leave the platform.

The microblogging platform has undergone a huge exodus of users following Musk’s takeover in October, naturally resulting in a sharp drop in revenues. This, together with the rebranding and other changes that followed since his takeover, has been driving advertisers off the platform.

Twitter was already battling losses for years and had an even harder time securing new advertising commitments since Musk’s takeover, taking on billions in debt. Elon Musk also revealed earlier this month that the company had seen a “50% drop in advertising revenue” and was suffering from a negative cash flow.

Though he went on to insist that the cash flow will soon turn positive, things don’t seem to be getting much better. It now remains to be seen if the company’s move to win back advertisers would succeed in making much of a difference.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : TechReport – https://techreport.com/news/elon-musks-x-corp-tries-to-woo-back-advertisers-with-discounted-ad-prices/

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