Hear that Giant Sucking Sound Elon? No, it is not all our jobs going south of the border to Mexico as 1992 presidential candidate Ross Perot claimed would happen with the passing of NAFTA. No, that is the sound of all your advertisers pulling out their money from Twitter. The reasons are many, but mainly have to do with content moderation and issues raised by civil right groups calling for boycotts. Those advertisers that brought in a big chunk of Twitter’s revenue (more than the ‘new and improved’ Twitter Blue) will ever make which Chief Twit desperately needs to help pay off the $13 Billon in debt he took on with the purchase.
A number of major companies have paused ads in recent days, including GM, Audi, Pfizer, General Mills, Volkswagen and other big names who are wary of potential changes to Twitter’s policies as well as the departure of top executives. Industry groups have also expressed concern about brand safety under Musk, and The New York Times reported this week that “IPG, one of the world’s largest advertising companies, issued a recommendation … for clients to temporarily pause their spending on Twitter.”
On Friday, the NAACP joined other civil rights groups in calling for an advertiser boycott of the platform. “It is immoral, dangerous, and highly destructive to our democracy for any advertiser to fund a platform that fuels hate speech, election denialism and conspiracy theories,” NAACP President Derrick Johnson said in a statement.
Chief Twit has been in the nest now for a little over a week since he took over Twitter and seems to be wasting no time to try and get Twitter to fall out the nest and crash very hard. The loss of advertisers revenue and (illegally) gutting around 50% of the workforce are major issues. Those job cuts included teams such as human rights, accessibility, AI ethics and curation. Then there are going to be the additonal employees who decide they can’t hack Elon’s anti work-from-home mind set or find the office is just ‘too toxic’ for their liking. If Twitter does fall out of the nest, there is little chance it is going to survive even if it is 16-years old. Time will tell what is going to happen, but if things continue heading the direction they are going with Twitter, I’d be surprised if it lasts into next year.