General Motors (GM) announced that it has temporarily paused advertisement spending on Twitter as the social media platform changes ownership, as per Teslarati.
GM pauses paid advertising
Twitter’s leading source of revenue has been through advertising, and advertisers often use the social media app to communicate more directly with consumers about their products.
However, as the platform has gone through intense times regarding content moderation and ownership, some advertisers are doubting continuing on the platform.
GM is one such advertiser who revealed that they halted their ads on Twitter temporarily.
“We are engaging with Twitter to understand the direction of the platform under their new ownership. As is normal course of business with a significant change in a media platform, we have temporarily paused our paid advertising,” said the company in an emailed statement.
The manufacturer did not specify what specific policies or changes they are concerned about.
This decision follows days after new Twitter owner Elon Musk tried to ease advertisers’ concerns via a message he posted on the platform. Musk laid out his reasoning for acquiring the company, the current situation, and some plans regarding advertising on the social network.
Musk stated that no changes had been made to the Twitter code yet. This may be done intentionally, as the new CEO called in Tesla software experts to check over the software.
Twitter’s content moderation
At the same time, many have complained about content moderation on the platform. Elon Musk has specified that a content moderation board “with widely diverse viewpoints” will help for a better user experience soon.
The new Chief Twit stated he does not want the platform to be a “free-for-all-hellscape where anything can be said with no consequences,” despite his promise to reconsider its content moderation policies and strengthen “free speech.”
GM’s decision to halt advertising highlights a current gap in the Twitter ecosystem. While some have declared Musk’s arrival as the platform’s revitalization, others have seen it as the opposite.
As is common for the community, both groups have made themselves known quite well.
It’s an understatement to say that Musk has a challenge before him, not only about the platform’s now wary advertisers and its toxic user base but also regarding the company’s employees.
However, if he can turn the company around, he will undoubtedly be worthy of the praise many users have given him.
Advertising revenue in the second quarter
Advertising made up around 92% of Twitter’s revenue in the Q2 of 2022. If advertisers continue to be uncertain about Twitter over new ownership, it may significantly impact the company.
Furthermore, according to CNN, the platform did not immediately respond to a request for comment about GM’s decision to pause Twitter ad spending.
