Why Indian advertisers are still rooting for Musk’s Twitter | The Financial Express

Why Indian advertisers are still rooting for Musk’s Twitter

A paid subscription model will allow Twitter access to its user database, which could potentially be a goldmine for brands that are spending on customised digital ads, points out Tanya Swetta, co-founder, id8 Media Solutions

Why Indian advertisers are still rooting for Musk’s Twitter
Among the changes that Musk has proposed for Twitter are a paid subscription at $8 a month, a reboot of Vines (short-form video service) and formation of a content moderation council

Even as global brands like Carlsberg, Volkswagen and General Motors have paused their ad spending on Twitter, advertisers in India, the third-largest market for the microblogging platform, are in a more generous mood towards it as a platform for consumer engagement.

“The platform offers brands an opportunity to directly engage with their audiences and have conversations that matter. With the company undergoing a transformation and new rules coming into effect in future, brands need to wait and watch, to understand their impact and devise a way forward,” says Mehernosh Pithawalla, senior VP and head of brand and strategic insights, Godrej & Boyce.

Among the changes that Musk has proposed for Twitter are a paid subscription at $8 a month, a reboot of Vines (short-form video service) and formation of a content moderation council. Considering Twitter is one of the few platforms that is still text-heavy, it would be important for it to have a solid strategy to compete with video-first platforms, says Harikrishnan Pillai, CEO and co-founder, TheSmallBigIdea.

“Bringing back Vines is going to be a very big part of Twitter’s revamp strategy. Vines was one of the first short-format video apps that died a natural death,” he says. In comparison with other platforms that have dedicated marketing teams, Pillai said it is imperative for Twitter in India to beef up its market friendliness and associations with brands.

A paid subscription model will allow Twitter access to its user database, which could potentially be a goldmine for brands that are spending on customised digital ads, points out Tanya Swetta, co-founder, id8 Media Solutions. “The takeover by Elon Musk is also expected to make the platform marketing friendly, with more customised advertisements for its users. Twitter, which was once in the same league as Instagram or Facebook, can now expect to be in a B2B market with LinkedIn owing to the $8 subscription fee that will ensure supervised content,” she says, expecting Musk to disrupt the market with his Twitter makeover.

The platform’s revenue for the April-June 2022 quarter dropped 1% year-on-year to $1.18 billion, falling short of the projected $1.30 billion. To bring back advertiser confidence, experts say Musk needs to take concrete steps to make the platform brand-friendly. “It will be quite interesting to see if the platform provides more accurate targeting options for brands, especially when all the other social media platforms seem to be far ahead in the way they use their profile data. Musk has also been vocal about content moderation on the platform, in the context of making advertisers feel safe. But right now, it appears that he intends to make the moderation policies looser, not tighter, in his pursuit of a platform for free speech,” says Siddharth Devnani, co-founder and CEO, SoCheers.

Musk’s free speech absolutism could possibly lead to an influx of more problematic content on Twitter, which will keep advertisers away. Devnani observes that no brand will want its communication placed alongside objectionable content, and therefore a balanced content moderation strategy is critical for Twitter’s acceptability as an advertising vehicle.

Also Read: Agoda ropes in Rashmika Mandanna for launch of digital ad campaign

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First published on: 08-11-2022 at 09:38:53 am
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