Small business owners are trying to capitalize on the shift of big advertisers away from X, betting that this will allow them to reach a wider audience on the platform. a source told On the Money.
Amid controversy over anti-Semitism, big advertisers like Disney, IBM and Comcast are siphoning hundreds of millions of dollars in ad dollars from Elon Musk’s social network, while some small business owners He says he is secretly grateful for this drama and is using it as an opportunity. Buy ads cheap.
“I’m not competing with the big boys anymore,” one executive said of the decision to start buying ads on X. “All the top investors and prominent businessmen I want to reach are still on the platform.”
The decline in advertising is a big problem for the company formerly known as Twitter. Although X is pushing growth in other business areas, 75% of the company’s revenue still comes from advertising, and 80% of advertising revenue comes from advertising for large companies, the source added.
Bloomberg reported this week that X is expected to earn $2.5 billion in ad revenue this year, which is lower than the $3 billion advertisers expected it to earn this year, and that X will earn $4 billion in ad revenue in 2022. It is said that it will not reach much. .
But X is leaning toward disaster for lack of a better option, and I added a blog post to that effect this week.
“We want to do more for SMBs. With X, we are positioned to be the single interface for SMBs.”
An X spokesperson highlighted the fact that small and medium-sized businesses can easily buy advertising on the platform without going through an agency, don’t have to sign long-term contracts, and can spend whatever amount they want.
One advertiser said some amount of hate speech on the platform was “inevitable” but said the return of conspiracy theorist Alex Jones was enough to make them temporarily reconsider their ad spend. . “I’m furious with Elon…why would he do something like that?”
Last month, Musk told advertisers to “pick themselves up.” Even though he acknowledged that the platform could fail without advertisers.
When it comes to user experience, many people at X say they’ve seen a hodgepodge of random advertisers lately.
“I’ve received the most random ads – Invest Qatar, Investor’s Edge, Next After – and I’ve never heard of any of them,” said one source who started noticing the random ads. “It’s like we’re scraping the bottom of the barrel.”
Source: nypost.com
