Twitter, amidst its rebranding to X, is taking a tough stance with advertisers in an attempt to bolster its financial performance. Recent reports indicate that Twitter’s revenue has plummeted by a staggering 50 percent. To address this, the company’s latest revenue-boosting strategy involves requiring brands to allocate a minimum of $1,000 per month towards advertisements to maintain their verified status on the platform, as stated in The Wall Street Journal. In response to a tweet discussing this report, Elon Musk commented that the “moderately high” cost serves as a preventive measure to curb the proliferation of scammers who create “millions of accounts” on the platform. Musk further suggested that brands could alternatively opt to pay $1,000 per month for the company’s verified organization badge.
It is evident that Twitter is actively seeking ways to minimize its losses, with advertising serving as its primary revenue stream. The Wall Street Journal also highlights that Twitter is reducing prices for certain advertising slots. For instance, the company is offering a 50 percent discount on all new bookings until July 31st, claiming that these discounts enable advertisers to “expand their reach during pivotal moments,” such as sporting events. Although the $1,000 monthly rate is unlikely to pose problems for larger brands, this new requirement may adversely affect smaller businesses that may be unable or unwilling to allocate the additional budget.