Sharp Tech with Ben Thompson cover image

Sharp Tech with Ben Thompson

(Preview) Elon at the DealBook Summit, The Strategic and Technical Failures at X, What Musk Might Be Getting Right

Nov 30, 2023
Elon Musk and Andrew Ross Sorkin discuss the limitations of Twitter for advertising and its impact on revenue. They explore the influence of society's valuation of free speech on company decisions and brand image. They also discuss brand safety and hate speech on Twitter, as well as Elon Musk's lawsuit against Media Matters and its implications on free speech.
16:23

Podcast summary created with Snipd AI

Quick takeaways

  • Twitter's format, lack of targeting capabilities, and focus on brand advertising have led to struggles in attracting advertisers and maintaining leverage over them.
  • The tension between free speech and brand safety poses challenges for platforms like Twitter, with brands prioritizing customer perception and association with controversial content over the principle of free speech.

Deep dives

Twitter as a Terrible Platform for Advertising

The podcast highlights that Twitter has always been a poor advertising platform, primarily due to its format and targeting limitations. The nature of Twitter as a platform, where users are often engaged in other activities or focused on textual content, makes them less receptive to advertisements. Unlike platforms like Instagram, where users are more likely to come across ads while casually browsing through pictures, Twitter users are more likely to find ads intrusive. Additionally, Twitter's advertising model has predominantly focused on brand advertising rather than direct response advertising, where the return on investment is easily measurable. This has led to struggles for Twitter in attracting advertisers, especially during periods of advertising slowdown or when faced with brand-associated controversies.

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