New strategies to rejuvenate Twitter’s business, moving beyond digital advertising
In a critical move to reinvigorate its business model, Twitter Inc., under the leadership of its owner Elon Musk and newly appointed CEO Linda Yaccarino, has outlined plans to concentrate on video, creator, and commerce collaborations, extending the social media giant’s reach beyond digital advertising. The announcement was made during an investor presentation, providing a glimpse into Twitter’s strategic pivot and ambition for its future.
CEO Linda Yaccarino’s Investor Presentation
Broader Collaborations and Partnerships
Yaccarino, who assumed her role as CEO on June 5, revealed to Twitter investors that the company is in preliminary talks with figures from politics and entertainment, payment services, and news and media publishers for potential collaborations. The source, who requested anonymity, described these as the early days of discussions about partnerships.
This investor presentation was Yaccarino’s first encounter with the company’s investors since her appointment, making it a significant event in the company’s timeline.
Twitter has had to grapple with numerous challenges in recent months following Musk’s acquisition in October. Among these hurdles were thousands of layoffs, scrutiny over lax content moderation, and a subsequent exodus of advertisers wary of their content appearing alongside inappropriate material. However, with Yaccarino, a seasoned advertising executive, at the helm, it’s evident that digital ads remain a priority for Twitter.
Advertisers, who had initially pulled back on their Twitter ad spending, have now recommenced their campaigns. Brands such as Warner Bros, Mondelez, McDonald’s, and Walmart have reversed their initial decisions and returned to advertising on the platform, as per the presentation. Yaccarino reported that ad spending in several categories has surged by at least 40% year-on-year, inclusive of health, consumer packaged goods, and financial services sectors.
X Corp: Envisioning the Future
“Super App” and Licenses for Money Transfers
Under Musk’s direction, Twitter changed its business name to X Corp, aiming to develop a “super app” similar to China’s WeChat. This app is anticipated to incorporate digital payments and an array of other services. The company is currently applying for “money transmitter licenses” in all 50 U.S. states, marking a significant step towards this goal.
Twitter is also ramping up its video content. Vertical video now comprises over 10% of the time spent on Twitter. The platform recently launched “Tucker on Twitter,” a new show hosted by former Fox News anchor Tucker Carlson. The company envisions selling ads and sponsorships alongside videos from Carlson and other content creators.
As Twitter enters a new era under the direction of Musk and Yaccarino, the focus on video, creator, and commerce partnerships symbolizes an innovative approach to revitalizing the social media platform. The world now watches as the company navigates this significant transition.