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Musk will reportedly make brands spend $1000 on Twitter ads

Twitter Ads

According to recent reports, Twitter (now known as X) is facing a significant drop in ad revenue. In an effort to boost their ads business, the company has announced a new requirement for brands to spend $1,000 on ads every month to maintain their verification. If brands fail to meet this spending threshold, they risk losing their gold checkmark verification.

Starting August 7, X will strip brands of their verification if they haven’t spent at least $1,000 on ads in the previous 30 days or $6,000 in the past 180 days. This change comes as part of Twitter’s efforts to revive its ads business. The gold checkmark verification, which denotes verified business accounts, was introduced in December when Twitter relaunched as X.

The Gold Checkmark

It’s important to note that Twitter reportedly charges businesses $1,000 monthly for the checkmark, but there are exceptions for the top 500 largest ad clients and the 10,000 most-followed company, brand, and organization accounts. Some companies, such as The New York Times, have refused to pay the fee yet still retain their checkmarks, while others, like Air France, have lost their verification.

It remains unclear whether the new requirement of $1,000 ad spend is in addition to the monthly fee that some companies pay for their checkmark. However, this move comes as a response to the decline in ad revenue for Twitter, which has seen a roughly 50% decrease according to Elon Musk. When Musk took over, half of Twitter’s top 100 advertisers reportedly left the platform. In December 2022, Twitter’s revenue fell by 40% compared to the same month in 2021.

An Era of Changes

These new changes aim to encourage brands to invest in advertising on the platform and help mitigate the decline in ad revenue that Twitter has been experiencing.

As part of its ongoing efforts to address the decline in ad revenue, Elon Musk made a strategic decision in May to appoint Linda Yaccarino as CEO of Twitter. Yaccarino, who previously held the position of Chair of Advertising Sales and Client Partnerships at NBCUniversal, brings extensive experience in the advertising industry to lead the company’s efforts to turn its ad slump around.

In addition to this leadership change, Twitter has also implemented measures to revive its ad revenue. One such effort includes offering discounted rates to certain advertisers. By providing these discounted rates, the company aims to incentivize advertisers to invest in advertising on the platform, ultimately boosting its ad revenue.

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