What Twitter’s Musk Era Means For Brands & Advertisers

Since news broke of Elon Musk's official purchase of Twitter, social media experts and brands alike are assessing how to address potential platform changes—and already-shifting content parameters.

So much has happened in the past couple of weeks, it’s hard to keep track. Let alone assess how it all impacts your brand. Make it make sense?! (We collectively yell at our Twitter feeds.)

Our Digital Team has been watching it all unfold. We’ve broken down the rollercoaster events of the last two weeks, and what Musk’s changes could mean for brands.

What’s happened so far.

Following Elon Musk’s purchase of Twitter on October 28, nine top executives were immediately fired. Musk also made the call to fire Twitter’s entire DEI team, as well as disband its ERG teams. And if that wasn’t enough, the company also held mass layoffs on November 4, firing about 50% of its workforce and eliminating 75% of its moderation teams. Because this was done so hastily, Twitter actually backtracked a bit and rehired some of the people they let go.

Most recently, Twitter’s Chief Privacy Officer, Chief Info Security Officer, and Chief Compliance Officer all resigned on November 9. Not a good look.

Currently, U.S. officials are determining whether to open a formal investigation into the platform purchase as details came to light regarding privileges granted to large foreign investors under the terms of the deal.

Musk has also shared a series of changes he is considering to make to the platform in an effort to encourage free speech in a “digital town square” type of setting, noting, “There is currently a great danger that social media will splinter into far right-wing and far left-wing echo chambers that generate more hate and divide our society.”

Proposed changes include:

$8/month Twitter Blue subscription package in which users would be able to pay for verified status and enhanced visibility.

Charging brands to use the platform.

Bringing back Vine in an effort to compete with TikTok.

How advertisers are responding.

Currently, 90% of Twitter’s revenue is sourced from advertising, meaning it’s important to keep advertisers happy. However, despite Musk’s efforts to reassure advertisers, a number of media agencies are recommending that their clients hit pause on advertising—and some even organic posting— on the platform as the transition begins.

Much of advertisers’ hesitance is rooted in concern over the expected uptick in misinformation after Musk alluded to loosening Twitter’s content rules. In fact, the Network Contagion Research Institute found a 500% increase in hate speech on Twitter within 12 hours of Musk taking over.

While the structural changes of the platform don’t hold severe implications for brands, the loosened content regulation will likely lead organizations to reconsider their presence on the platform—beyond merely pausing paid media efforts as more spam-like and hate speech-centric language pops up over time. In other words, we could potentially see a Twitter mass exodus in the foreseeable future.

We could potentially see a Twitter mass exodus in the foreseeable future

The impact of pay-to-play.

As the platform becomes more pay-for-play, individuals and brands that choose to opt into the subscription-based model will automatically see prioritization of their content. This model marginalizes those who aren’t interested in paying or don’t have the ability to pay $96 per year for the perk.

Experts predict that Twitter will become “flooded with people looking to use it as a megaphone for their own brands of ‘thought leadership,’” resulting in users migrating to other more vibrant, inclusive platforms and conversations. Interestingly enough, though, Twitter is reportedly seeing its highest DAU since Musk took over.

Alternative platforms to consider.

Newer platforms like Mastodon (which saw over 70K new sign-ups with the news of Musk’s takeover) and CounterSocial are certainly ones to watch and are worth considering, though it’s too early to say whether users and brands are headed that way long term.

However, when it comes to pre-existing platforms, LinkedIn is a solid route to go when considering a replacement platform for Twitter, especially given many brands are already active on that channel for thought leadership and employee engagement purposes.

Additionally, Reddit—modeled after the traditional message board—is a great option for brands that are looking to be conversation drivers, given its discussion-centered format.

Next steps for brands.

Proceed slowly and carefully. Like other media agencies, Praytell recommends temporarily hitting pause on any paid spends on the platform as we await implementation of Musk’s proposed changes.

Moreover, continue monitoring your online community. Watch out for any sudden spikes of spam, inappropriate rhetoric, or hate speech, as well as user calls for a platform boycott, to help inform whether a platform migration is necessary down the line.

We’ve got plenty more advice for  how to navigate this turbulent era for social media. Reach out to us at hello@praytellagency.com.