Twitter aims to enhance its business model by prioritizing video content, partnerships with creators, and e-commerce initiatives, as outlined in an investor presentation by owner Elon Musk and newly appointed Chief Executive Linda Yaccarino, which was reviewed by Reuters.
Yaccarino, who officially took the helm on June 5, addressed Twitter investors on Thursday. According to a source familiar with the discussion, the company is exploring potential collaborations with notable figures from politics and entertainment, as well as partnerships with payment services and news media publishers.
This presentation marked Yaccarino’s initial address to the company’s investors, the source noted.
Since Musk’s acquisition of Twitter in October, the company has experienced significant turmoil, including the layoffs of thousands of employees, scrutiny over inadequate content moderation, and a departure of advertisers concerned about their ads being displayed next to unsuitable content.
Yaccarino’s hiring follows her successful tenure at NBCUniversal, where she modernized the advertising sales approach. This move indicated that digital advertising continues to be a focal point for Twitter.
After Musk’s takeover, some advertising firms advised their clients to temporarily halt spending on the platform, but those recommendations have since changed. According to a slide presented at the investor meeting, none of the major advertising holding companies currently suggest a pause in spending on Twitter.
Several prominent brands, including Warner Bros, Mondelez, McDonald’s, and Walmart, have resumed their advertising efforts on Twitter following initial delays, as highlighted in the presentation.
Yaccarino informed investors that ad expenditures in several categories, such as health, consumer products, and financial services, have increased by at least 40% year-over-year, as per the insider source.
A Twitter executive opted not to comment on the discussion.
Video and Commerce
Under Musk’s leadership, Twitter has rebranded itself to X, reflecting his ambition to develop a “super app” akin to China’s WeChat, which would integrate digital payments and various other services.
The company is actively seeking “money transmitter licenses” across all 50 states in the U.S., according to details shared in the presentation.
Additionally, Twitter is concentrating on expanding its video offerings. A slide indicated that vertical video now comprises over 10% of the time users spend on the platform.
Notably, former Fox News host Tucker Carlson debuted a new show titled “Tucker on Twitter” earlier this month.
Twitter envisions offering advertisements and sponsorships alongside videos produced by Carlson and other content creators, according to the source.
Yaccarino has also recently conveyed to her colleagues that Musk has shown strong support for her initiatives, indicating a promising start to their working relationship, the source added.
© Thomson Reuters 2023
