Twitter is planning to focus on partnerships in video, creator, and commerce to revitalize its business beyond digital advertising. This comes after an investor presentation by owner Elon Musk and new Chief Executive Linda Yaccarino, which was reviewed by Reuters.
New Partnerships
Yaccarino, who started as CEO on June 5, informed Twitter investors that the company is in early discussions with potential partners such as political and entertainment figures, payments services, and news and media publishers. The discussions are aimed at forging partnerships that would help boost Twitter’s business. The presentation was Yaccarino’s first time addressing the company’s investors.
After Musk acquired Twitter in October, the social media firm faced months of chaos, including layoffs of thousands of employees, criticism over lax content moderation, and an exodus of many advertisers who did not want their ads appearing next to inappropriate content.
Musk’s hiring of Yaccarino, a longtime advertising executive who modernized ad sales at Comcast-owned entertainment and news conglomerate NBCUniversal, was a signal that digital ads remained a priority for Twitter.
Video and Commerce
Under Musk, Twitter changed its business name to X, reflecting the billionaire’s vision to create a “super app,” like China’s WeChat, that he has said would include digital payments and other services. The company is applying for “money transmitter licenses” in all 50 US states, according to a slide from the presentation.
Twitter has also focused on growing video content on the platform. Vertical video now accounts for more than 10 percent of time spent on Twitter. Tucker Carlson launched a new show earlier this month on the platform called “Tucker on Twitter.” Twitter envisions that it could sell ads and sponsorships alongside videos from Carlson and other content creators.
Yaccarino has told colleagues in recent days that Musk has expressed strong support for her ideas, and the working relationship was off to a positive start. Some well-known brands including Warner Bros, Mondelez, McDonald’s, and Walmart have resumed advertising on Twitter after initial pauses. Ad spending in several advertiser categories is now up at least 40% year-over-year, including health, consumer packaged goods, and financial services. None of the major advertising holding companies are currently recommending a pause. Twitter’s focus on partnerships in video, creator, and commerce could help the company revitalize its business beyond digital advertising.
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