Why VW is stopping its Twitter advertising

Why VW is stopping its Twitter advertising


Dusseldorf Of VWThe group recommends its brands “suspend their paid activities on the platform until further notice”. The reason is that “Twitter is revising Brand Safety Guidelines”. In addition to the main VW brand and VW Commercial Vehicles, in the advertising environment under the umbrella of the group, these are primarily Audi, PorscheSkoda, Seat and Cupra.

With that decision, Volkswagen joins a growing number of companies that are leaving Twitter take – including General Motors, Mondelez and Pfizer. However, this move is also easy for advertising companies: Twitter accounts for less than one percent of the $521 billion global digital advertising budget.

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In contrast, the withdrawal is a huge blow to Twitter. The company generated 89 percent of its $5.1 billion in revenue from ads in 2021. Sales have already “declined significantly,” Musk tweeted Friday afternoon.

He cites “activist groups” pressuring advertisers as a reason, although “content control has not changed and we are doing everything we can to please the activists.” Musk claims more in a tweet, with: “It’s so stupid!”

Musk’s solution: He threatens advertisers who freeze their ad budgets by “naming nuclear names and embarrassing them.” The tweet follows a suggestion by a right-wing internet activist that names should be mentioned in order for a “boycott” to be called. Musk’s Twitter account consists of a raucous mob of loyal fans who attack almost anyone who criticizes or doubts him.

Such threats should go down better with these fans than with advertisers. As is the fact that the new owner of Twitter, with more than 110 million followers, immediately shared a sinister conspiracy theory.

Musk was still trying to keep customers. “I believe in advertising,” Musk wrote in an open letter to “beloved Twitter advertisers” a week ago. Twitter wants to be “the most respected platform in the world”. “Twitter obviously can’t just be a hellscape where everyone can do whatever they want.”

>> Read here: Here’s how Handelsblatt readers view Twitter’s plan

Musk won’t be able to reduce his reliance on ads even with a planned subscription service. He implements that idea in his other companies: Price Tesla customers can rent driving assistance systems for up to $200 a month, while SpaceX subsidiary Starlink also offers satellite internet for 80 euros a month in Germany.

But that idea may be difficult to implement on Twitter, analysts say. Even if the roughly 424,000 authorized users paid eight dollars a month for blue tick in the future, annual sales would be less than $40 million.

The departure of senior management

So advertisers are essential to Musk being able to shoulder Twitter’s $13 billion in debt. So far, advertisers have not been denied their attention.

They may have been upset by some of the departures from Twitter, including some of their most important contacts: Sarah Personette, senior account manager, Leslie Berland, head of marketing, or Jean-Philippe Maheu, vice president of worldwide customer solutions .

Twitter staff tweeted about the eviction

The removal of Volkswagen or General Motors also has specific details. Musk is the boss of electric car maker Tesla, which faces increasing competition from VW and GM.

Wolfsburg and Tesla are competing for market leadership in electric cars in Europe, while Musk’s company is clearly ahead worldwide. GM boss Mary Barra has also set a goal of surpassing Tesla with a number of new electric vehicle models.

Products from the VW empire, which are managed independently, have not yet been revealed. “We are monitoring the situation closely and will decide the next steps based on how things develop,” says an Audi spokesperson.

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