Elon Musk has recently announced that companies using X or Twitter will be required to pay $1,000 for ads over the previous 30 days or risk losing their gold checkmark. This decision, as reported by The Wall Street Journal, comes as Musk has been implementing various changes to Twitter in an attempt to rescue the struggling company. However, these changes have not been able to alleviate Twitter’s financial troubles.
So, why would Elon Musk charge companies such a steep price for ads? Well, it turns out that Musk has been facing significant challenges in managing Twitter. He has been burdened with heavy interest payments on $13 billion in acquisition-related debt and has admitted that Twitter is losing 50% of ad revenue. Despite removing most of Twitter’s employees, the company still continues to bleed money. As a result, Musk has shifted his priorities and is now trying to attract advertisers to the platform. This is quite a surprising move, considering Musk’s reputation for refraining from spending money on ads in order to focus more on product development.
According to reports, Musk will charge companies at least $1,000 over the previous 30 days to maintain their verified status represented by the coveted gold checkmarks. This is in addition to the $1,000 they already pay for the check icon. However, there is a temporary discount available until the end of this month for Twitter’s top 500 ad clients and 10,000 most followed corporate accounts. The purpose of these discounts is to help advertisers reach a wider audience during important events like the Women’s World Cup.
Despite Twitter’s struggling financial situation, Musk firmly believes that the app will eventually become the most valuable brand on Earth. However, there are other changes that he has implemented on the platform, apart from the advertising fees. One of the biggest changes is the rebranding of Twitter as X. Although this new name may be hard to remember, the company claims that it has managed to beat the odds and achieve an all-time high usage. Additionally, Musk has enabled users to earn money through X’s monetization model, leading some individuals to publicly celebrate their earnings.
Users have the opportunity to earn money on X through ads, and the platform rewards them with more income as more people engage with their posts. This encourages users to seek more replies in order to boost their earnings. However, it is important to note that other social media platforms, such as Facebook, tend to drive engagement through extreme negative emotions. On X, it seems that having more haters in your replies can potentially translate to more money.
In conclusion, Elon Musk’s decision to charge companies for advertising on Twitter is a strategic move to generate revenue and address the platform’s financial troubles. As he continues to make changes to the platform, such as rebranding it as X, the impact on its users is expected to be significant. Only time will tell if these changes will be enough to save Twitter from its ongoing struggles.
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