Michele Gonzalez | Getty Images
The campaign will promote SpaceX-owned and operated satellite Internet service called Starlink on Twitter in Spain and Australia, according to internal social media business logs viewed by CNBC.
The advertising campaign that SpaceX is purchasing to promote Starlink is called the “acquisition” of Twitter. When a company buys one of these packages, it typically spends up to $ 250,000 to put their brand on top of the main Twitter timeline for an entire day, according to a current and former Twitter employee who asked to stay. nameless because they were not allowed to speak on behalf of the company.
Users should see Starlink brand messages for the first three times they open the Twitter app on the day or days of the planned acquisition campaign in Australia and Spain. The campaign, which was purchased last week, was to be launched in the coming days first in Australia and then in Spain.
SpaceX typically hasn’t bought large advertising packages from Twitter, current and former employees said.
Starlink uses a constellation of satellites that broadcast the internet to paying subscribers who also need to obtain terminals from SpaceX to access it. SpaceX developed Starlink with the aim of providing high-speed Internet connectivity to people in places that are poorly served, or not served at all, by cable or fiber optic infrastructure.
Pressure on Twitter ad sales
Musk is also the CEO of the electric vehicle manufacturer Tesla, in addition to his responsibilities at SpaceX and Twitter. He famously boasted that his auto company doesn’t spend money on traditional advertising like print, radio, television, and online display ads. Instead, Tesla gets headlines from fan blogs, news sites, and builds excitement through auto clubs, fan or shareholder events, and social media engagement.
Musk is now in the position of having to sell online advertising as the “Chief Twit”, or more formally CEO, of Twitter, which remains a leading international social media platform. Twitter boasted about 237.8 million monetizable daily active users prior to Musk’s controversial private deal. Musk is on a mission to generate at least half of Twitter’s revenue from subscribers, not just advertising.
A campaign, even one as large as an “acquisition,” isn’t enough to compensate for multiple advertisers who stopped spending on Twitter recently or fled the platform during Musk’s rocky takeover.
Companies including General Motors, Audi, Volkswagen, General Mills, Pfizer, United Airlines and others have suspended advertising spending on Twitter for the time being, partly responding to an onslaught of hate speech and disinformation on the platform. Advertising giant Interpublic Group has recommended its agency clients to do the same. Twitter previously made about 90% of its revenue from advertising.
When Musk quickly launched and then quickly suspended a paid subscriber badge on Twitter last week, it further shook advertisers’ confidence in the platform. The badge looked like a previous verification blue tick, but it only cost users $ 7.99 per month. Cheaply acquired blue ticks have been used by pranksters and impostors to pretend to be brands, politicians and celebrities, and to post unflattering and inaccurate messages.
An account created in the likeness of pharmaceutical company Eli Lilly caused a serious problem Thursday when it posted a message that “we are thrilled to announce that insulin is free now.” The tweet went viral and remained on Twitter for at least two hours before being removed. The real Eli Lilly account then tweeted: “We apologize to those who have received a misleading message from a fake Lilly account.”
Eli Lilly’s share price dropped dramatically after the fake tweet was posted, although major equity indices were positive at the time, with the S&P 500 having its biggest rally in two years. Musk Tesla-led automaker, SpaceX competitor Lockheed Martin, Senator Ed Markey (D-Mass.), And many others have also been impersonated and sedated on the platform.
This weekend, Musk tweeted: “Twitter brings a huge number of clicks to other websites / apps. The biggest click driver on the internet by far.” The new Twitter CEO was promptly corrected by marketers and former Twitter employees, and a correction note was added to his tweet. He later deleted the tweet.
A former Twitter employee, Claire Díaz-Ortiz, called him, writing: “Lies. I worked @twitter 5 years + has written 2 books on social media marketing. This is false and @twitter He knows. We never sold it to clicks, because it’s much lower on traffic than Facebook, LinkedIn, etc. Twitter has other strengths. (And marketing is more than clicks. “
At a company-wide meeting last week, Musk told current Twitter employees that bankruptcy is not out of the question, as the company faces an exodus of advertisers and a broader economic downturn.