X warns advertisers to invest $1,000 a month or face de-verification
Twitter is allegedly taking a tough stance with advertisers as part of its rebranding efforts, aiming to boost its financial performance. Recent reports indicated a significant 50 percent decline in Twitter’s revenue. The Wall Street Journal has revealed that the company’s latest approach to increase revenue involves requesting brands to invest a minimum of $1,000 per month on advertisements to retain their verified status on the platform.
Responding to a tweet about The Wall Street Journal’s report, Musk says the “moderately high” fees are a preventative measure to help reduce the number of scammers creating “millions of accounts” on the platform. Musk added that brands could instead pay $1,000 per month for the company’s verified organization.
It’s clear that Twitter is looking for ways to cut losses, and the company’s main source of revenue is advertising. The Wall Street Journal also reported that Twitter is lowering the prices of some of its ad spots. For example, Twitter is giving all new bookings a 50 percent discount until July 31st. The company claims that these discounts are meant to allow advertisers to “reach the target at crucial moments”, such as sporting events.
While the $1,000 monthly rate is unlikely to be a problem for larger brands, the new change could hurt smaller businesses that don’t want to commit or don’t have the extra budget to commit.
