In a recent announcement, Elon Musk, owner of Twitter and CEO of Tesla, revealed that the social media platform will soon start compensating verified content creators for ads featured in their replies. The initial payment block is estimated to be around $5 million. Musk emphasized that only verified users will be eligible to participate, and the ads served to verified individuals will be taken into account.
Taking to the micro-blogging site, Musk said, "In a few weeks, X/Twitter will start paying creators for ads served in their replies. First block payment totals $5M. Note, the creator must be verified and only ads served to verified users count."
Struggles with Advertiser Retention
Since Elon Musk's acquisition of Twitter in October of last year, the platform has faced challenges in retaining advertisers. Concerns have arisen regarding the placement of ads, particularly after the company's significant layoffs, which further intensified advertiser wariness, stated a report in Reuters.
Linda Yaccarino to Assume Leadership as CEO
Twitter's impending shift in leadership adds to the anticipation surrounding this move. Linda Yaccarino, an experienced advertising professional from NBCUniversal, has been appointed as the newly named CEO of the social media platform. Her extensive background in the advertising industry brings hope for innovative strategies and improved revenue generation.
Increasing User Attention and Ad Relevance
Earlier this year, Musk stated that Twitter currently earns approximately 5 to 6 cents per hour of user attention. However, he expressed the potential to increase this figure to 15 cents or more by incorporating more relevant and timely advertisements. This indicates Twitter's intention to enhance user engagement and optimize ad content to align with users' interests.