As more brands pull out of Twitter, SpaceX buys big Twitter ad package

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Elon Musk has apparently decided that one way to build trust in Twitter as an advertising platform is to become an advertiser himself. Yesterday, CNBC reported that SpaceX has purchased one of Twitter’s premium ad packages — while SpaceX typically rarely invests in Twitter ads — as Musk’s other company plans to advertise Starlink satellite internet to customers in Spain and Australia. According to internal documents reviewed by CNBC, SpaceX has so far spent $160,000 on the Twitter ad campaign and could invest up to $250,000 in total.

According to Musk, SpaceX buying this ad package is nothing out of the ordinary. The CEO of both SpaceX and Twitter disagreed with CNBC, describing the ad investment as “huge”.

“SpaceX Starlink bought a small – not big – ad package to test the effectiveness of Twitter ads in Australia and Spain,” Musk tweeted. “Did the same for FB/Insta/Google.”

While Musk has been dealing with Twitter’s advertising woes more recently, it’s true that this year Musk was also motivated to grow Starlink’s customer base. In February, Forbes reported that Starlink could generate $25 million a month if it had 250,000 users, which Musk had indicated there were. That could bring in $300 million annually, allowing SpaceX to quickly recoup the cost of launching the service, as long as Musk continues to find new customers, Forbes said.

“Obviously there’s a real business here, and additional customers will continue to amortize the company’s costs more quickly over time,” Forbes reported, crediting Musk with launching premium internet services that SpaceX was to blame for. could catch up even faster. Those premium options ranged from SpaceX recently offering $500 a month higher bandwidth internet services for businesses nationwide to its most recent unveiling of $5,000 a month internet services for yachts and oil rigs.

Despite SpaceX’s interest in reaching more customers, Twitter is rarely viewed by SpaceX as a source of new customers. Current and former SpaceX employees told CNBC that “SpaceX hasn’t typically bought major ad packs from Twitter until now.”

Musk may have recently learned from his position within the social platform how Twitter could help his other company. Or maybe this big ad buy could be Musk’s way of showing that Twitter is still a viable platform for advertisers, putting his money where it should be again.

SpaceX did not immediately respond to Ars’ request for comment. Twitter has reportedly stopped operating its communications agency.

How big was SpaceX’s Twitter advertising package?

Musk has disputed reports commenting on the large size of the ad package SpaceX purchased. According to CNBC, the ad package is a campaign known as a Twitter takeover.

There are two types of acquisition packages that advertisers can purchase from Twitter. One of them is a trend takeover, where brands can place an advertisement next to trending topics. The other is a timeline takeover, where brands are confident that their ads will be at the top of the timelines. A timeline takeover ensures that a brand’s ad is the first ad users see when they log in.

CNBC reported that SpaceX has bought the timeline acquisition Twitter describes in its marketing materials as “the equivalent of a prime-time TV ad or a billboard in a location where millions of people will see your brand’s ad.”

Musk said the roughly $160,000 SpaceX spent is “small” on his books, but in terms of how Twitter describes its own ad packages, the Timeline takeover appears to be one of the largest ad packages SpaceX could have bought. on one of Twitter’s business pagesTwitter describes the acquisition as giving advertisers access to “the most premium, wide-reach placements.”

As CNBC pointed out, it’s not big enough to make up for all the advertisers pulling out of Twitter, whether SpaceX’s ad investment is considered small or large. For someone like Musk who is forced to look at the big picture, it probably seems pretty small.

Musk insists that SpaceX has invested in advertising for Starlink across all major social platforms, and so it’s possible that SpaceX’s first big business with Twitter may have little to do with Musk owning the platform and more has to do with a larger bid. now to drive Starlink’s growth in every way possible.

Publicly adjusting to his new Twitter role, Musk continues to show that he seems to have little understanding of what Twitter’s marketing value is, despite SpaceX becoming one of Twitter’s largest advertisers. Many social media administrators scoffed at Musk’s tweet and then deleted a tweet claiming that “Twitter is generating a huge number of clicks to other websites/apps. By far the largest click driver on the web.” Before Musk’s tweet was deleted, Twitter users added context, Musk checked the facts and clarified that Twitter generates the fewest number of clicks compared to other social networks.

A well-known former employee who worked at Twitter from 2009 to 2014, Claire Diaz-Ortiz, perhaps best known for getting the Pope to join Twitter— joined those who called out Musk for “lies.”

“This is 100 percent false, and Twitter knows it,” Diaz-Ortiz tweeted, clarifying that Twitter doesn’t sell ads on clicks because it knows it can’t compete with platforms like Facebook as a traffic driver. “Twitter has other strengths. (And marketing is much more than clicks),” she said, instructing Twitter’s new owner.


The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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