What Marketers Need to Know About Elon Musk Disruption on Twitter?

Marketing | 5 minutes to read

05th May, 2022

Elon Musk’s acquisition of Twitter could change the fundamentals of social media marketing forever. There are multiple changes speculated vis-à-vis how the platform works for users as well brands and social media marketing service providers

Snapshot:

    • Elon Musk acquiring the social media platform Twitter has given rise to various speculations in the digital marketing community

    • People are expecting fundamental changes in the platform, such as a censor-free platform, posts with edit feature, and the elimination of spam bot

    • Social media marketing services and brand advertising could be put at a disadvantage if content restrictions are eased

    Every digital marketer knows that the social media marketing landscape keeps evolving. A lot! Every social media platform has a lot of moving parts and works in different ways from each other. Building and executing a social media marketing campaign is an uphill challenge due to new algorithmic changes happening every day. Most companies outsource their social media marketing services in a bid to manage and justify their ROI and achieve tangible results in the long run.

    Talking about the evolving environment of social media marketing, Elon Musk became Twitter’s biggest shareholder on April 4 after acquiring a huge 9.1% stake in the microblogging and social networking service. The question now arises: What could the influence of Elon Musk on Twitter and on the digital marketing landscape in general mean? A certain disruption in the traditional advertisement revenue model of Twitter is on the cards.

    What are the changes on the horizon for Twitter?

    Tesla’s CEO aims to enhance the microblogging platform by adding new features, making algorithms open-source, and confronting security issues like spambots. Musk’s entrance into the social media industry hints toward a potential disruption in the way these platforms operate. Some speculate that Twitter might move to a subscription-based model and reduce its reliance on advertising dollars.

    Musk has also expressed the idea of including an ”edit” feature on the platform and has called crypto bots the “single most annoying problem” on the microblogging site. With the user trust in Meta and Google fading, it would not be surprising if Musk went into more of a news and trends discovery approach at Twitter. Also, every social media platform needs a face, and he fits directly into the larger scheme of things after Jack Dorsey has moved out. There could be some pretty fundamental changes in how Twitter works as a result of Elon Musk’s deeper involvement.

    1.Twitter advertising should not be affected, at least in the short term

    Musk is known to be reluctant about business advertising. He has often questioned Twitter’s $5 billion a year advertising revenue model. He even stated that the platform is not a way to make money. However, Twitter will still want to preserve the cash flow for some time in the near future, and hence digital marketers need not be wary as of now.

    Twitter is poorly commercialized against companies like Meta or Google, and hence any disruptions in the advertising model would further sink its earning capacity. Whether it will be a subscription-based model or charging influencers and brands to reach audiences, there is still time for any large-scale changes.

    2.Striking down the spambots

    Twitter’s user growth in the past has been inflated by bots, and the company has gone on record to acknowledge the claim. This is obviously a challenge for both users and marketers. For the users, a lot of content that they browse is generated by artificial sources for purposes unknown to them. For social media marketers and advertisers, a large chunk of the targets they are reaching might be fake or inactive accounts.

    However, Musk has vowed to clean up the bots issue, and doing so could be a boon for social media marketers. This could also sound warning bells for other social media platforms to clean up their infrastructure and provide a clean experience to the user and digital marketing community.

    3.Content restrictions will be eased

    Elon Musk has been vocal about ”free speech on social media,” and he sees Twitter as a platform where the matters crucial for the future of humanity are debated. He has argued that social media channels should not monitor and censor comments that, although offensive, remain legal.

    This could create an uncomfortable situation for social media marketing companies and marketers. In the recent past, Twitter has taken numerous steps to make brands feel safe, and the fear among the digital marketing companies and brands is that the free speech policy could put brand messaging at a disadvantage. A volatile platform can be more engaging, but the ways of such engagement might make users less ideal recipients for marketing messages.

    Conclusion

    There will be implications of Elon Musk’s entry into Twitter and not just for the said platform but for the entire digital marketing landscape. A media landscape that is favourable to brands and advertisers is expecting a major disruption and pivot towards user-friendliness. There are some potential positives and some negatives out of the Musk acquisition of Twitter. Marketers have to be watchful of new updates and align themselves with changes as and when they happen.

    Contact us to learn more about our integrated social media marketing services.

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