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Elon Musk’s tumultuous reign at Twitter has led to a damaging rift with top brands and marketers, with the social media company’s $5bn-a-year advertising business hit by tensions over content moderation and resources. Multiple top advertising agencies and media buyers told the Financial Times that nearly all of the big brands they represent have paused spending on the social media platform, citing alarm at Musk’s ad hoc approach to policing content and decision to axe many of its ad sales team.
Musk, meanwhile, has sought to personally call chief executives of some brands that have curbed advertising in order to berate them, according to one senior industry figure, leading others to instead reduce their spend to the bare minimum required so as to avoid further confrontation with the billionaire entrepreneur. After several waves of job cuts and departures, Twitter’s ads business team has shrunk so much that many agencies no longer have any point of contact at the company and have received little to no communication in recent weeks, according to four industry insiders.
Some brands have been unable to get feedback on how previous campaigns have performed because of the staffing shortages, one media buyer said. Others are complaining Twitter’s ads systems have also become buggy, making it difficult or even impossible to run campaigns. “It is quite unique. The turmoil, the damage, nothing of this magnitude has happened before. Never,” said a senior executive at a big four advertising agency. “He seems to put off even those advertisers who wanted him to succeed,” another top advertising agency executive said.
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