Key highlight
- Twitter has said that accounts on the platform must subscribe to Twitter Blue before they can run ads.
- It said business accounts spending in excess of $1000 per month already have gold checks and will continue to enjoy access to advertising without interruption.
- This is coming amid projections that Twitter’s ad revenue will plunge further this year.
The microblogging site, Twitter, has said that non-subscribers to Twitter Blue will no longer be able to run ads on the platform starting from Friday, April 21, 2023. This followed the removal of legacy blue checks from millions of accounts on the platform as Elon Musk continues his aggressive push for more subscriptions.
While this may cause a further reduction in the already-dwindling adverts revenue for Twitter, the company is hoping to rake in more money from subscriptions as several businesses and individuals stripped of the legacy blue checkmarks will not be forced to subscribe.
Broad verification strategy
Twitter in a notice sent to advertisers on the platform and titled ‘Building a better Twitter through verification’ stated:
- “Starting April 21, your @account must have a verified checkmark or subscribe to either Twitter Blue or Verified Organizations to continue running ads on Twitter. Business accounts spending in excess of $1000 per month already have gold checks or will soon, and they’ll continue to enjoy access to advertising without interruption at this time.
- “This change aligns with Twitter’s broader verification strategy: to elevate the quality of content on Twitter and enhance your experience as a user and advertiser. This approach also supports our ongoing efforts to reduce fraudulent accounts and bots. Subscribing to either of these services means you have been verified by Twitter as a real person and/or business.
- “Amongst other features, you’ll have a more visible organic presence and a broader range of creation tools. We’re excited for you to get started and to benefit from a superior Twitter experience.”
Twitter’s ad revenue projected to fall
Before now, Twitter’s ad revenue has been projected to by 28% in 2023. Analysts at Insider Intelligence said they were slashing an earlier worldwide revenue estimate of $4.74 billion by more than a third to $2.98 billion as trust in the platform deteriorates.
In a report released earlier this month, Principal Analyst at Insider Intelligence, Jasmine Enberg, said:
“The biggest problem with Twitter’s ad business is that advertisers don’t trust Musk. Twitter needs to unravel Musk’s personal brand from the company’s corporate image to regain advertiser trust and bring back ad dollars.”
Musk’s tumultuous takeover of Twitter has already seen several major advertisers suspend their activity on the platform after the Tesla tycoon loosened the reins on content moderation and laid off over half of a 7,000-strong workforce.
According to research firm Pathmatics, in January fourteen of the top 30 advertisers on Twitter stopped advertising on the platform since Musk took charge on October 27. Insider Intelligence noted that Musk’s efforts to build up a subscription service “won’t make up for the lost ad revenue.”
Musk bought Twitter for $44 billion. Musk, however, said he realised after taking over that the company’s value is worth half the price, which explains why he is aggressively pushing for paid subscriptions to shore up the company’s revenue.
