Twitter is set to launch a new initiative that will reward verified content creators for advertisements featured in their replies. This program, announced by CEO Elon Musk on Friday, will release an initial payment block totaling approximately $5 million (around Rs. 41 crore).
Musk clarified through a tweet that only verified creators will be compensated and that the ads will need to be served specifically to verified users.
Since Musk’s acquisition of Twitter last October, the platform has faced challenges in maintaining its advertising base, with many advertisers expressing concerns about ad placement following significant staff layoffs.
The announcement arrives just as Twitter’s newly appointed CEO, Linda Yaccarino, prepares to take charge. Yaccarino, who comes from a background in advertising at NBCUniversal, is expected to implement strategies to rejuvenate Twitter’s advertising model.
Previously, in March, Musk indicated that the platform generates only about 5 to 6 cents per hour from user attention. He expressed optimism that this figure could reach 15 cents or more with the implementation of more relevant and timely advertisements.
In the midst of these developments, Twitter, along with companies like Meta’s Instagram, Alphabet’s YouTube, and TikTok, may soon face regulatory scrutiny. This comes after a complaint from the European consumer group BEUC to the European Commission and consumer authorities, alleging that these platforms promote misleading advertisements related to crypto assets.
The ongoing legal actions against U.S. cryptocurrency platforms such as Coinbase and Binance, along with the previous collapse of FTX, have heightened concerns regarding consumer protection in the crypto sector, including popular currencies like Bitcoin and Ether.
Recently, the European Union adopted a comprehensive set of regulations known as MiCa, marking a significant step in cryptoasset governance.
BEUC’s complaint, filed Thursday, highlighted the proliferation of misleading crypto asset advertisements on social media as an unfair commercial practice, which poses serious risks to consumers, including substantial financial losses.
© Thomson Reuters 2023
This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.
