Twitter will begin paying its verified content creators for ads served in their replies in the coming weeks. Elon Muskwhich has owned the social networking site since October 2022, announced that the first block payment amounts to $5 million, however, it has set some conditions.
What’s new: Under Musk’s new rules, content creators will receive cash for ads on their answers, but only if they are verified. Additionally, the billionaire added “only ads posted to verified users count.”
Why we care: This news means that advertisers will have another potential revenue stream on Twitter.
why now Musk’s announcement comes as advertising guru Linda Yaccarino prepares to join Twitter as its new CEO. His leadership is expected to help restore confidence in the platform after ad revenue plummeted following some of Musk’s restructuring decisions, including laying off nearly half of its 7.50 staff Twitter workers.
Arousing concern about ad placement, ad spending took a big hit, falling roughly 20% year-over-year, according to research from Sensor Tower and Insider Intelligence.
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What did Twitter say? Musk wrote on Twitter:
“In a few weeks, X/Twitter will start paying creators for ads posted on their replies. The first block payout is $5 million. Note that the creator must be verified and only count ads served to verified users.”
In March, Musk spoke of his high hopes for the future of Twitter’s ad sales despite its recent challenges. On Twitter, he revealed his goal to increase the platform’s current 5-6 cents per hour user attention to 15 cents or more. The billionaire explained that he aims to achieve this through more relevant and timely ads.
More details are expected soon.
Chronology:
October 2022 – Musk buys Twitter for roughly $44 billion after months of negotiations.
October 2022 – Some of Twitter’s top bosses are reportedly being fired, including CEO Parag Agrawal, CFO Ned Segal, Chief Legal Officer Vijaya Gadde, and General Counsel Sam Edgett.
November 2022 – Musk begins the biggest layoff in Twitter’s history by starting talks to eliminate nearly half of its staff worldwide.
November 2022 – Twitter turns it into a blue-label verification system into a paid service at a cost of $8 per month. Public figures from Beyoncé to Cristian Ronaldo lose their blue ticks overnight, leading to a rise in fake profiles impersonating public figures. February 2023: Posting 20% dip frequency on Twitter.
April 2023 – Twitter is removed from Microsoft’s ad platform.
April 2023 – Musk enforces mandatory verification for advertisers.
May 2023 – Linda Yaccarino is announced as the new CEO of Twitter.
June 2023 – Twitter’s ad revenue in the US falls 59%.
June 2023 – Musk announced that Twitter will begin paying verified content creators for ads served in their replies.
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