Twitter has been going through a very long and strenuous process of change. Since Elon Musk proposed a plan to buy Twitter, there has been a big overhaul of the platform. But the process of buying Twitter was not smooth sailing for the billionaire. After legal coercion, Musk finally bought the microblogging site for $44 billion. While the CEO was in the process of transforming it into the ‘digital town square,’ there were many financial challenges.
When Elon Musk completed the Twitter deal, many lobbyists pressured advertisers to pull out their advertisements. Since then, many advertisers have stopped promoting their products on the platform. Advertisements have been a major revenue stream for Twitter. So he introduced many new ways to diversify the revenue stream. It included an $8 monthly subscription to Twitter Blue for some exclusive features and the blue tick. However, nothing has led to any substantial results, so the platform will allow weed businesses to promote their product.
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The Advertisers Have To Follow The Long List Of Rules To Advertise Their Cannabis Products On Twitter
Since Elon Musk took over Twitter, advertisers have been skeptical about promoting their products on the platform. There have been many changes that he brought forth that did not align with them.
As per a report, Twitter has lost its top 100 advertisers, with the top 50 pulling out of advertising, which led to a loss of almost $750 million. Since Elon Musk became CEO, ad revenue has plummeted by 28% in 2023. The estimated revenue has come down to $2.98 billion from $4.74 billion.
So, to boost ad revenues, Twitter has allowed packaged weed businesses to promote their products on the platform. Elon Musk has employed this tactic to lure more advertisers to the platform. Twitter’s website read, “Going forward, certified advertisers may feature packaged cannabis products in ad creative.”
It continued, “They may also continue responsibly linking to their owned and operated web pages and e-commerce experiences for CBD, THC, and cannabis-related products and services.” But the advertisers have to adhere to certain rules to promote their products. It includes licensing and pre-authorization from Twitter, targeting jurisdictions where it is legal, and preventing advertising it to people who are under 21 years old.
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The CEO Also Allowed Political Advertisements In January 2023
Elon Musk has been a flag bearer of free speech since he announced that he would be acquiring Twitter. In a tweet, the CEO assured that he is against censorship that “goes far beyond the law.” But, in January 2023, Elon Musk made a move to enable political advertisements on Twitter.
By “free speech”, I simply mean that which matches the law.
I am against censorship that goes far beyond the law.
If people want less free speech, they will ask government to pass laws to that effect.
Therefore, going beyond the law is contrary to the will of the people.
— Elon Musk (@elonmusk) April 26, 2022
In 2019, Jack Dorsey banned all political advertisements on Twitter, citing the fact that the ads “present entirely new challenges to civic discourse.”
Moving forward, we will align our advertising policy with that of TV and other media outlets. As with all policy changes, we will first ensure that our approach to reviewing and approving content protects people on Twitter. We'll share more details as this work progresses.
— Twitter Safety (@TwitterSafety) January 3, 2023
But, in January 2023, Twitter overturned this decision and decided “to expand the political advertising we permit in coming weeks.” Twitter’s Safety Page cited the reason to undo Dorsey’s decision, saying, “We believe that cause-based advertising can facilitate public conversation around important topics.” They ensured that all the content will be first reviewed to “protect people on Twitter.”
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