February 8, 2023

Money News PH

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Buying ads on Twitter is a “high risk,” according to the world’s largest ad agency.

Twitter may be in deep trouble when it comes to generating ad revenue: GroupM, part of WPP, the world’s largest advertising company — and Twitter’s biggest backer — reportedly tells its customers that buying ads on the platform is “high risk “ is connected to Platformer and Digiday. It’s the third advertising juggernaut to tell big companies they want to put their money elsewhere, after IPG and Omnicom Media Group both recommended pausing advertising on the platform.

GroupM works with companies such as Google, L’Oréal, Bayer, Nestle, Unilever, Coke and Mars. If you’ve ever seen this chart of how a few brands make pretty much everything you buy at the grocery store, you’ll notice that many Venn diagrams overlap with GroupM’s customer list.

GroupM is reportedly concerned about several specific things following Elon Musk’s takeover of Twitter; In a document, it cites the large number of Twitter executives leaving or being fired (particularly those responsible for security and compliance), the spate of high-profile impersonation by “verified” users, and also raises concerns about the capabilities of Twitter to follow orders from the Federal Trade Commission. If Twitter wants to lose its high-risk label, there are several things GroupM wants to see, according to a document viewed by Digiday and a Slack message from Twitter’s agency partnerships seen by Platformer. The list includes:

GroupM did not immediately respond to The Verge’s request for comment. Twitter no longer has a communications department to contact with such requests. Platformer’s internal message says Twitter is “working through” GroupM’s requirements with leadership.

While Musk has said he wants to shake Twitter off its reliance on ad revenue, he’s not there yet. For one, many people can’t even purchase the company’s Premium Blue subscription service right now because the company has temporarily suspended that program. musk has said that Twitter burns around $4 million every day, and he’s also burdened it with hefty interest payments on the debt it used to buy it in the first place. Twitter needs money if it’s going to keep going – but it seems advertisers are increasingly reluctant to provide it.