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Buying ads on Twitter is ‘high risk’ according to the world’s largest advertising agency

Twitter could be in big trouble when it comes to generating ad revenue: GroupM, part of WPP, the world’s largest advertising company – and Twitter’s largest publisher – reportedly tells its customers that buying ads on the platform is “high risk is, according to until Platform game and Digiday. That makes it the third advertising juggernaut who told big companies they might want to take their money elsewhere, after IPG and Omnicom Media Group both recommended pausing ads on the platform.

GroupM works with companies such as Google, L’Oréal, Bayer, Nestle, Unilever, Coke and Mars. If you’ve ever seen that graphic about how a few brands make pretty much everything you buy at the grocery store, you’ll find that many Venn diagrams overlap with GroupM’s list of customers.

GroupM is reportedly concerned about several specific issues following Elon Musk’s takeover of Twitter; in a document it cites the large number of Twitter executives leaving or being fired (especially those responsible for safety, security and compliance), the spate of high-profile impersonations by “verified” users, and also raises concerns about capabilities from Twitter to follow Federal Trade Commission orders. If Twitter wants to lose its high-risk label, there are several things GroupM reportedly want to see, according to a document viewed by Digiday and a Slack message from Twitter’s lead partner seen by Platform game. The list includes:

GroupM did not respond immediately The edge‘s request for comment. Twitter no longer has a communications department to contact with such requests. The internal message seen by Platform game says Twitter is “working through” GroupM’s requirements with leadership.

While Musk has said he wants to wean Twitter off of its reliance on advertising for revenue, he’s not there yet. First, many people can’t even purchase the company’s premium Blue subscription service right now, as the company has temporarily suspended that program. Musk said that Twitter burns about $4 million a day, and he’s also saddled it with hefty interest payments on the debt that bought it in the first place. Twitter needs money if it is to survive, but advertisers seem increasingly hesitant to provide it.

Shreya has been with australiabusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider australiabusinessblog.com, Shreya seeks to understand an audience before creating memorable, persuasive copy.

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