However, it seems that assurances are not enough to move advertisers from their stand. The new owner is now planning a new way in an effort to bring them back on Twitter. A report by The Wall Street Journal claims that Musk plans to offer advertisers “generous incentives” for advertising on the platform.
“Value add” to advertisers
The “generous incentives” are reportedly offered to those who advertise on the platform before December 31. The move is an apparent effort to boost advertising spends before the year ends.
According to emails shared with publication Marketing Brew by two advertising agency executives, the “value add” to advertisers reach a certain incremental spend limit. This means that Twitter will offer incentives on the basis of the spending by advertisers. In one case, Twitter is offering to match advertising spends.
How much incentive is Twitter offering to advertisers
Within the US, if an advertiser spends $200,000 (approximately Rs 1.63 crore), they will get a 25% value add. Similarly, if an advertiser spends $350,000 (approximately Rs 2.8 crore), they’ll receive a 50% value add and if the spending is $500,000 (approximately Rs 4 crore), they’ll get a 100% value add, that is, $1 million.
Furthermore, the offer doesn’t include Twitter’s Amplify, which was designed to let publishers and creators monetise their video content on Twitter. It is to be noted that about 90% of Twitter’s revenue comes from advertising.
During the last month, various reports poured in noting that advertisers paused giving their ads on Twitter. Multiple major advertisers, including Jeep, Mars, Kellogg and Verizon, stopped running ads on the platform entirely.