A Rocky Transition of Power
Okay, so last week Twitter's ad revenue was falling; shortly after another major advertising firm announced that it would no longer be advertising on Twitter. So we’re left asking;“What is the long-term strategy to reduce Twitter's reliance on advertising?”
Well, I think we all know how the Twitter Blue experiment turned out (it was shut down after only two days! ). No doubt that Musk will try a new idea at some point but fingers crossed it’ll be an actual improvement since Twitter is used as a global hub for social information sharing and we’re praying to god it won’t be destroyed by an arrogant out-of-touch Gen Xer who isn’t equipped to deal with a platform that empowers the younger generations.
Incorporating the creator economy into Twitter's payment system is a no-brainer. It's currently difficult to monetize a Twitter account, although you might have some luck with Tips and Super Follows.
Advertising on Twitter is possible for those with a sizable enough following, but that the platform's low conversion rate is common knowledge. The same, however, can be said for marketing as a whole.
Yet, the client acquisition expenses on Twitter are higher, this is why Instagram advertising are more common than Twitter ones. Musk has stated his intention to create a rival to TikTok by bringing back Twitter's early video platform, Vine.
Making it easier for content creators to make a living, perhaps by paying them, is one method to entice people away from platforms like TikTok, Instagram, and YouTube. However, because the videos on Vine are so short, it is not suited for this purpose. Still, the easiest way for producers to monetize their content is through YouTube, as 10-minute videos with pre-roll and mid-roll adverts may generate thousands of dollars.
That being said, users don't visit Twitter to view videos because it's mostly a text-based platform. Perhaps Musk will implement a Vine-style section inside the app. This, however, raises issues such as music copyright infringement. If you want to avoid difficulties with the record labels, you need a content ID system that prevents unauthorized usage of Drake’s songs and other musical works. Users will be upset if you restrict their access to all Drake content on the site. And the attorneys for the record labels can relax, because individuals will continue to set videos to Drake’s music regardless.
It's preferable to strike a contract, as TikTok did, that enables users to create videos that include music clips. To remain competitive with YouTube, he'll need to figure out a way to increase income by more than 55 percent while simultaneously generating enough cash flow to cover the yearly interest payment of $1 billion. Payments that Musk’s acquisition of Twitter saddled the company with.
