Billionaire Elon Musk will reportedly meet with select advertisers on Wednesday as Twitter scrambles to assuage concerns that have hammered its key source of revenue.
Musk is slated to speak with a “vetted group” of advertising executives during an event for Twitter Spaces, the company’s live audio platform. WPP, one of the “Big Four” advertising agencies, is set to attend the talk, the Washington Post reported, citing a source familiar with the matter.
The topic of discussion for the event is still unclear. However, Musk’s meeting will unfold during a period in which advertisers have increasingly balked at the billionaire’s handling of the social media site and raised concerns about whether it will remain “brand safe” for companies.
The Post has reached out to Twitter and WPP for comment.
Last week, Musk admitted that Twitter has seen a “massive drop in revenue” since he took over the company – a trend he attributed to “activist groups pressuring advertisers.” Advertising comprises roughly 90% of Twitter’s annual revenue, raising the stakes in the dispute.
“Extremely messed up! They’re trying to destroy free speech in America,” Musk tweeted.
The admission came days after a group of more than 40 civil rights and activist groups penned an open letter to Twitter’s top 20 advertisers, urging their leaders to pull ads unless Musk agrees to crack down on hate speech. Co-signers included the NAACP and GLAAD.
Musk threatened to launch a “thermonuclear name & shame” campaign against key advertisers who have paused spending due to activist pressure.
Musk, who is known for his bombastic social media presence, has spooked some advertisers while pledging to emphasize free speech at Twitter. Critics have argued that Musk’s “absolutist” approach to free speech will embolden extremist voices on the platform.
Rising concern about Twitter’s content moderation practices under Musk has prompted a mass exodus – with General Mills, Mondelez, Ford, GM and Volkswagen among the firms who have pulled their ad dollars from the platform.
As The Post reported last week, advertisers are making contingency plans for their budgets in case Twitter becomes a more chaotic platform under Musk. Another “Big Four” ad firm, IPG, has already advised its roster of blue-chip clients to pause ad spending.
Musk is already taking steps to secure alternate revenue streams to make up for a potential advertising shortfall. The company is charging users $8 per month for a subscription that includes account verification and other perks.
The company also conducted sweeping layoffs in an effort to cut down on costs.
[Written in collaboration with other media outlets with information from the following sources]
