Elon Musk has come up with an aggressive monetization offer for the network he bought last week for $44 billion. (Photo by Olivier d’Uriery/AFP)
Elon Musk wants to diversify Twitter’s revenue streams beyond advertising, but no large social network has survived without advertisers.
“Facebook created an economic model,” explains Jasmine Enberg of Insider Intelligence consultancy. The free service is supported by the sale of advertising space.
This model was particularly favorable for meta (Facebook, Instagram) and Google or YouTube, which allowed for large-scale advertising personalization.
But “it’s not the only way,” the analyst admits.
In the face of advertiser budget cuts, the impact of inflation, and tightening regulations on personal data collection, “every platform is looking for new ways.”
Things have already been particularly difficult for Twitter, which relies on 90% of its advertising, but it’s a network that can get away with advertisers more easily than other networks.
The problem has gotten worse since the Tesla founder bought the Bluebird network at the end of October.
According to Media Matters, an NGO that has criticized Musk’s Twitter in the past, half of the network’s top 100 advertisers have either suspended or “obviously suspended” their advertising spend on the platform. I’m here.
“I didn’t understand that Twitter was a brand in itself,” Musk said. says Roberts.
Do you charge users?
The platform tries two kinds of solutions. Either charge the user or charge the content her creator.
A forum site, Reddit has a hybrid model with ads, paid subscriptions, and coupons that give access to perks.
But “it’s always hard to ask for money for something that’s free,” concludes Carolina Milanesi of Creative Strategies.
Twitter has been offering paid subscriptions with added features since last year.
Musk wanted to increase the price of the system to $8 per month in the US (a value similar to Disney+ and Netflix’s cheapest offerings) and include account verification.
However, the partial launch of this system was chaotic, with so many fake accounts compromised that it was eventually shut down.
“The idea itself is not bad, but we didn’t find the right price point,” said Enberg.
“Perks may not be attractive enough people to sign up, and account verification helps ensure the integrity of accounts and conversations.” This is why it “shouldn’t be paid”.
“Blue Verified” subscribers, the network’s most active users, will be exposed to half as many ads, which “reduces the quality and size of the audience” for advertisers, said Insider Intelligence’s Enberg. said.
New platforms try to avoid advertising entirely without guaranteeing long-term profitability.
For example, on the live discussion social network Discord, users can subscribe to access more emojis.
Hugely successful startup BeReal hopes to raise money through in-app purchases, according to the Financial Times.
Do you charge influencers and content developers?
Last June, Twitter had approximately 230 million daily active users. Musk has welcomed endless user growth since taking the helm of the company.
But that growth doesn’t necessarily translate into dollars.
Snapchat, which launched the paid version of the app in June, has gained more and more users and is making less and less money.
Faced with the reality of numbers, platforms will compete with content creators to attract and retain an audience, but will also earn a commission on their revenue or charge a fee to promote their messages and videos. To do.
“This is a huge opportunity for Twitter, with so many celebrities, politicians and journalists[among its users]where the company can make mutually beneficial deals,” said Enberg.