Twitter Wants To Focus On Videos, Creators, And Commercial Partnerships To Restore Its Business

JAKARTA - Twitter plans to focus on videos, creators and commercial partnerships to restore its business outside of digital advertising, as stated in an investor presentation by its owner, Elon Musk, and new CEO Linda Yaccarino, which Reuters has reviewed.

Yaccarino, who took office as CEO on June 5, told Twitter investors on Thursday 15 June that the company was in the middle of initial talks with political and entertainment figures, payment services, as well as news and media publishers about potential partnerships. This is known from a source familiar with the matter and speaks on condition of anonymity to discuss the calls of personal investors.

"This percentage is the first time Yaccarino has spoken to company investors," the source added.

After Musk acquired Twitter in October 2022, the social media company underwent several months of chaos, including the dismissal of thousands of employees, criticism of less stringent content moderation, and the departure of many advertisers who did not want their ads to appear next to inappropriate content.

It happened — first day in the books!Stay tuned…

— Linda Yaccarino (@lindayacc) June 6, 2023

It happened first day in the books!Stay taught...

Yaccarino's recruitment by Musk, a veteran advertising executive who has modernized advertising sales at NBCUniversal, entertainment and news conglomerate Comcast, is a signal that digital advertising remains a priority for Twitter.

Several ad purchase companies had recommended to their clients to stop spending ads on Twitter after the takeover by Musk. However, these recommendations have been reversed and currently no major advertising company recommends stopping ads, as seen in the slides featured in the presentation.

Famous brands such as Warner Bros., Mondelez, McDonald's, and Walmart have continued their ads on Twitter after temporarily stopping them, the slide said.

Yaccarino told investors that advertising spending in several advertising categories has now increased by at least 40% compared to the previous year, including in the category of health, consumer goods, and financial services, the source said. A Twitter executive declined to comment.

Under Musk's leadership, Twitter changed its business name to X Corp., reflecting the billionaire's vision of creating "super apps" like WeChat in China, which he said would include digital payments and other services.

Twitter is proposing a "money sender permit" in 50 US states, according to the slide contained in the presentation.

The company is also focused on growing video content on its platform. Vertical videos now account for more than 10% of the time spent on Twitter, as listed on other slides.

In addition, former Fox News host, Tucker Carlson, launched a new show on the platform called "Tucker on Twitter" earlier this month.

Twitter estimates that they can sell ads and sponsors alongside videos from Carlson and other content creators, the source said.

Yacarino has also told his co-workers in recent days that Musk has shown strong support for his ideas, and their working relationships are starting well, the source added.