SpaceX has purchased an advertising package on Twitter for its satellite broadband service Starlink, according to Elon Musk, the owner of both SpaceX and the social media site, which is experiencing an advertiser exodus.
“SpaceX Starlink purchased a small ad package to evaluate the efficacy of Twitter advertising in Australia and Spain. Did same for FB/Insta/Google, “Musk sent a tweet on Monday.
More than 90 percent of Twitter’s second-quarter revenue came from ad sales, but sponsors have fled out of worry that Musk may alter the company’s content moderation policies.
What’s the deal with this sir? https://t.co/s3LTcqVMr1
— The Chainsaw (@chainsawdotcom) November 14, 2022
General Motors, General Mills, Mondelez International, and Volkswagen AG ceased advertising on the platform one month after Musk purchased it.
“Currently, the majority of clients are stopping their Twitter activity due to concerns about extreme content and content management,” said Martin Sorrell of S4 Capital. Last week, the CEO of Tesla and SpaceX told advertisers that he intended to use the social media platform to pursue the truth and eliminate bogus accounts.
A few days after reporting that the site had experienced a “massive” reduction in revenue and blaming activist groups for pressuring advertisers, he highlighted the potential of Twitter’s bankruptcy.
A reporter for Platformer reported on Monday, citing an internal email, that Twitter had locked down its code base and halted all system production modifications until further notice. In the meantime, Tesla shares tumbled 4% after Musk stated he has “too much work” on his plate, with investors fearing he is too focused with Twitter at a time when the world’s most valuable manufacturer faces manufacturing challenges and increasing competition.