Elon Musk has apparently decided that one way to inspire trust in Twitter as an advertising platform is to become an advertiser himself. Yesterday, CNBC reported that SpaceX bought one of Twitter’s premium advertising packages, when SpaceX typically rarely invests in Twitter advertising, as Musk’s other company plans to start advertising Starlink satellite internet to customers in Spain and Australia. . According to internal documents reviewed by CNBC, SpaceX has so far spent $ 160,000 on Twitter’s ad campaign, and in total it could end up investing as much as $ 250,000.
According to Musk, SpaceX’s purchase of this ad package is nothing special. The SpaceX and Twitter CEO took issue with CNBC describing the advertising investment as “big”.
“SpaceX Starlink purchased a tiny, not a large, ad package to test the effectiveness of Twitter advertising in Australia and Spain,” Musk tweeted. “He did the same for FB / Insta / Google.”
While Musk has more recently tackled Twitter’s advertising woes, it’s true that Musk has also been motivated this year to grow Starlink’s customer base. In February, Forbes reported that Starlink could generate $ 25 million a month if there were really 250,000 people using it, which Musk had indicated there were. This could bring in $ 300 million a year, allowing SpaceX to quickly recoup the service’s launch costs, provided Musk continues to find new customers, Forbes said.
“Clearly there is the real deal here and other customers will continue to amortize the company’s costs faster over time,” Forbes reported, crediting Musk with launching premium Internet services that could offset SpaceX’s debt even faster. Those premium options ranged from SpaceX which recently offered higher bandwidth internet services of $ 500 per month for rural businesses to newer internet services of $ 5,000 per month for yachts and oil rigs.
Despite SpaceX’s interest in reaching more customers, Twitter has rarely been considered a source of new customers by SpaceX. Current and former SpaceX employees told CNBC that “SpaceX generally hasn’t bought large ad packs from Twitter,” until now.
It could be that Musk just learned from his position on the social platform exactly how Twitter could help his other business. Or maybe this big ad buy could be Musk’s way of showing that Twitter is still a viable platform for advertisers, once again putting his money where his lips are.
SpaceX did not immediately respond to Ars’ request for comment. Twitter has reportedly stopped running its communications office.
How big was SpaceX’s Twitter ad package?
Musk disputed reports commenting on the large size of the advertising package purchased by SpaceX. According to CNBC, the ad package is a campaign known as the “takeover” of Twitter.
There are two types of “capture” packages that advertisers can purchase from Twitter. One is a trend capture, where brands can place an ad alongside trending topics. The other is a timeline capture, where brands are confident that their ads will be at the top of the timeline. A timeline capture makes a brand ad the first ad that users see when they log in.
CNBC reported that SpaceX bought the acquisition of the timeline, which Twitter describes in its marketing materials as “the equivalent of a prime-time TV spot or billboard in a place where millions of people will see your brand ad.”
Musk said the roughly $ 160,000 that SpaceX spent is “small” in his books, but in terms of how Twitter describes their ad packs, the timeline capture appears to be among the largest ad packs SpaceX could have bought. . ON one of the Twitter company pagesTwitter describes the acquisition as giving advertisers access to the “most premium and mass-reach placements.”
As noted by CNBC, regardless of whether SpaceX’s advertising investment is considered small or large, it’s not big enough to compensate for all advertisers who withdraw from Twitter. For someone like Musk who is forced to look at the big picture, it probably looks pretty small.
Musk insists that SpaceX has invested in Starlink advertising across all major social platforms, so it’s possible that SpaceX doing such big deals with Twitter for the first time has little to do with Musk owning the platform and more with a largest offer now to drive Starlink’s growth by any means possible.
By publicly adapting to his new role on Twitter, Musk continues to demonstrate that he appears to have little understanding of Twitter’s marketing value, despite SpaceX becoming one of Twitter’s largest advertisers. Many social media managers scoffed when Musk tweeted and then deleted a tweet stating that “Twitter brings a huge number of clicks to other websites / apps. The biggest click driver on the internet by far. Before the tweet’s. Musk was deleted, Twitter users added context, verifying Musk’s facts and making it clear that Twitter generates the fewest clicks compared to other social networks.
A well-known former employee who worked on Twitter from 2009 to 2014, Claire Diaz-Ortiz, perhaps best known for persuade the Pope to join Twitter– joined those they called Musk for “lies”.
“This is 100% false and Twitter knows it”, Diaz-Ortiz tweeted, making it clear that Twitter doesn’t sell ads on clicks, because it knows it can’t compete with platforms like Facebook as a traffic driver. “Twitter has other key strengths. (And marketing is more than clicks), ”she said, instructing the new Twitter owner.