Patcay.com – Since taking over Twitter at the end of last year and rebranding it as X, Elon Musk has embarked on various initiatives to boost the company’s revenue. One of these initiatives is the introduction of monthly subscriptions. In fact, Musk has a controversial plan to turn X into a fully paid platform for all users.
Recently, Musk made a rather controversial statement. According to him, X’s revenue has declined by 60% due to the intervention of the ‘Anti-Defamation League’ (ADL), a Jewish organization.
CEO Linda Yaccarino also faced challenges in addressing X’s advertising shortfall. As a result, Musk and Yaccarino began considering alternatives. They started contemplating a shift from Twitter’s internal advertising platform to external vendors.
In May, Twitter began selling advertising slots through the InMobi advertising marketplace. More recently, Google has confirmed its agreement to sell advertising space for Twitter.
Thus, Twitter’s new strategy is to sell ads through Google. Ironically, Musk has openly expressed his disapproval of the advertising industry. When he first acquired Twitter, approximately 92% of the company’s revenue came from advertising.
Musk then attempted to introduce subscription features to ensure the platform wasn’t entirely dependent on advertising. However, it seems that the increasingly challenging business conditions have forced Musk to rely on advertising once again.
Max Willens, a senior analyst at Insider Intelligence, stated that the partnership with Google demonstrates that Twitter is making concerted efforts to increase its revenue.
“Twitter needs to mend its relationship with large agencies and brands, rather than solely relying on small-scale advertisers,” he said.