Good morning team! We’re working towards the end(?) of the Musk-Twitter saga now that the deal hasn’t been settled and the social network’s revenue has ended. But latest round of numeric disclosures from Twitter showed just how dependent the company is on advertising revenue, indicating a potential weakness in the tech mogul’s plan to buy and reform its services.
To be clear, I twitter user and an advocate for free speech. By that I mean that I believe that governments should not control the words of individuals. This means that I advocate for Twitter to find a platform position that allows maximum user word count while maintaining a market position that allows it to also do business.
The exchange explores startups, markets and money.
There are two sides to the issue of doing business. First, Twitter needs to create a platform that users want to spend a lot of time on. Why? Because the time spent on Twitter turns into advertising opportunities and therefore income. Second, Twitter must operate a platform that advertisers are willing to spend money on; it can’t have so much toxic content that advertisers don’t want their brand to be associated with nastiness.
YouTube has faced similar problemsFor example.
I share all of this because Musk seems to be of the opinion that Twitter has done too much to control its platform — though it can be a little tricky to know exactly if the multi-CEO is joking or taking his public messages seriously. He seems to think that users should have more free space for doodles. Whether I agree with Musk or not is irrelevant; which does The point is how advertisers see the possible future changes. Because if they don’t like them, the Twitter business will have few ways to make up for the loss of those revenues.
companies earnings results make it clear this morning. And given that Twitter is already trying to reassure advertisers ahead of the sale, it’s not hard to see where Musk’s plans for the social media giant could collide with a financial reality that’s far from benign.
What are the risks?
To put it simply, if Twitter loosens its content moderation policy and a wave of toxic bullshit starts, advertisers can leave. Sarah Perez researched this for TechCrunch just recently.:
If Twitter opts out of content moderation, it could allow for more bullying, hate speech, hate speech, misinformation, and other offensive content. This could make Twitter less appealing to newbies who were already wary of posting in the “public square,” an area that influences Twitter. continuous anxiety with flat user growth. But it can also prevent advertisers from investing their budgets on the platform.
This isn’t an idle worry caused by your friendly TechCrunch team as we’ve been spitting out Slack business dynamics all day. Not a drop. Twitter is pre-sale work to reassure advertisers.
Today’s earnings report shows why Twitter is so obsessed with maintaining its ad revenue: it has nothing else to fall back on. From the company’s Q1 report detailing how the company’s total revenue was around $1.2 billion:
Credit: techcrunch.com /