Topline
Elon Musk claimed Saturday that Apple has “fully resumed” advertising on Twitter, while Amazon is also reportedly planning to return to the platform very soon, in a set of moves that are likely to offer some relief for the social media company after a massive exodus of advertisers over content moderation concerns.
Apple’s purported resumption of advertising on Twitter ends a brief feud between the two companies … [+]
Key Facts
Musk announced Apple’s purported reversal and acknowledged that the company was Twitter’s biggest advertiser while addressing his followers in a live audio broadcast on Twitter Spaces, without offering any additional details.
Forbes has reached out to Apple for comment, but the iPhone maker has not publicly addressed either pulling or restoring ads on Twitter.
After Musk’s announcement, tech news site Platformer reported that Amazon may also soon follow suit and resume advertising on Twitter.
Amazon plans to spend $100 million per year and is waiting for Twitter to carry out some “security tweaks to the company’s ads platform,” Platformer’s Zoë Schiffer tweeted, citing an unnamed source.
Musk also alluded to some advertisers’ purported return to the platform by tweeting out a “note to thank” them “for returning to Twitter”, a change from his earlier combative tone where he threatened to “name and shame” companies refusing to advertise.
Key Background
The reported return of Apple and Amazon’s ad dollars comes at a critical time for Twitter, which has been bleeding advertisers at a rapid pace over content moderation concerns. After taking over Twitter, Musk swiftly moved to restore previously banned controversial accounts while the platform has seen a surge in hate speech. On Friday, the New York Times reported that in the week leading up to the ongoing FIFA World Cup—usually a massive event for Twitter and its advertisers—the company’s ad revenues were 80% below internal expectations. Platformer reported weekly ad bookings in the Europe, Middle East and Africa region were down 49%, with the company expecting a $12 million revenue loss from the U.K. Musk’s alleged response to the advertiser exodus likely didn’t help either, with the Financial Times reporting that he tried to personally call up CEOs of some of these companies “in order to berate them.”
What We Don’t Know
It is unclear if the resumption of spending from Apple and Amazon will help Twitter overcome its shortfall from the loss of several other major brands including Ford, General Motors, General Mills, Pfizer, United Airlines, Balenciaga and others.
News Peg
Last week, Platformer and the Wall Street Journal reported that Twitter was offering advertisers massive discounts in order to lure them back onto the platform. According to the report, Twitter was offering double benefits to any advertiser willing to spend more than $500,000—effectively offering double the reach. It’s unclear if the return of Apple and Amazon is negotiated under these discount offers.
What To Watch For
The iPhone maker’s purported return to advertising on Twitter and Musk’s recent meeting with Apple CEO Tim Cook likely signal the end of a feud between the two companies. The feud was largely fanned by the Twitter CEO—who wondered aloud in a tweet whether Apple “hate[s] free speech”—and his supporters, with Apple making no public remarks about it. It is unclear what this means for the relaunch of Twitter Blue—the $8 per month subscription service which offers a verified badge to any user willing to pay. The launch of Blue was reportedly delayed earlier this week in an effort to circumvent Apple’s 30% fee on all in-app purchases made on the iPhone, including subscriptions like Twitter Blue. Musk and his team were attempting to get around this by removing Blue subscriptions as an in-app purchase from the iPhone app and offering it on Twitter’s website instead. Some commentators have suggested that Apple’s resumption of advertisements on Twitter likely involves a deal to continue where the social media company would agree to pay the so-called 30% “Apple tax” on subscriptions.
Further Reading
Elon Musk Says Apple Is ‘Fully’ Advertising on Twitter Again (Bloomberg)
Twitter Blue Launch Reportedly Delayed—Again—As Musk Takes Issue With Apple Store Fees (Forbes)
