Elon Musk’s Purchase of Twitter, and its New Subscription-Based Model, have Massive Implications for Advertisers

Nov 11, 2022
KLR Agency

Elon Musk’s purchase of Twitter, and its new subscription-based model, have massive implications for advertisers. 

Here at KLR Agency, we know that this is a game changer that could open up more opportunities or create roadblocks to success in the digital marketing industry. That’s why marketers need to understand how best to maximize ROI through the new system.

By understanding these nuances and developing strategies accordingly, companies can take full advantage of the latest developments from Twitter HQ.

Elon Musk’s Purchase of Twitter

On April 14th, 2022, tech mogul Elon Musk announced his intention to purchase Twitter. This acquisition has been viewed as a way to extend the impact and presence of Musk’s brand on social media. 

The acquisition was made through Tesla Inc., one of Musk’s many companies. With this new ownership comes an array of implications for many companies’ digital advertising strategies.

At KLR Agency, we waited patiently to see what Musk would do to increase Twitter’s profits, and we knew that it would be big, whether for better or worse. Then came the news of the new subscription-based system, more commonly known as Twitter Blue, and new changes to the advertisement model. 

Under this structure, businesses would have the chance to pay a recurring cost for access to enhanced targeting possibilities and analytics utilities that could aid them in grasping their viewers more accurately and personalizing their strategies as required. 

Additionally, they would have access to exclusive content creation opportunities, such as sponsored tweets or promoted accounts, that can help increase engagement rates among users.

Our job at KLR Agency is to understand how changes like these affect how social media marketing is executed. That being said, we consider that adopting the subscription model may present a quandary for advertisers; from cost to the opacity of pricing and features, there is much to consider before taking the plunge. 

Nonetheless, our team analyzed the changes and reached a few conclusions on how they could benefit or hinder Twitter’s potential for marketers. 

We’ll start by looking at some of the benefits this new model offers.

Benefits of the Subscription Model

The subscription model has been polarizing since its launch. However, it does offer several benefits that can help businesses grow and increase their reach.

Businesses can employ customer data to create advertisements that are more precisely calibrated toward their intended viewers, thus obtaining improved outcomes from their advertising endeavors while also diminishing the costs associated with ineffective adverts.

This allows them to get better results from their advertising campaigns while also reducing costs associated with running ads that don’t convert well.

Subscription models provide valuable insights into how customers interact with your business over time. This data can be leveraged to refine product design, marketing tactics, cost frameworks, and more; thus enabling you to increase returns while keeping customers content.

However, our team at KLR Agency also sees some potential difficulties that must be tackled – let’s take a look at these now.

Challenges of the Subscription Model

Advertisers looking to take advantage of the new subscription model offered by Elon Musk face several challenges. 

The expenses related to taking advantage of this platform can be considerable, as Twitter’s advertising costs are not cheaper than other social platforms. 

Additionally, there are limitations on content creation and distribution that could limit an advertiser’s ability to reach their target audience. Finally, pricing models may not be transparent or easy to understand, making it difficult for advertisers to budget accordingly.

What we know is that advertisers have been spending less money on Twitter now than they were before Elon’s changes to the platform. So, the reception hasn’t been good. 

If you follow Twitter’s advertising promotions, you’ll see that they are now trying to salvage what they lost so far. Elon Musk is even offering to match advertising values of up to $1 million in ad value, but only for companies that spend a minimum of $500,000. 

Content creation and distribution can be a challenge when using this platform due to its restrictions on certain types of content, such as videos or even the use of hyperlinks to other websites. What we mean is that you can do those things, but Twitter will actively reduce your post’s exposure just for containing that type of content. 

This could limit an advertiser’s ability to reach specific audiences or promote certain products/services effectively. 

Moreover, prior authorization from Twitter may be needed for some accounts to begin running ads, adding an extra hurdle that should be thought about when devising campaigns.

Adopting the subscription model can be a complex endeavor for advertisers, but with strategic implementation; it is feasible to optimize returns and capitalize on this novel approach. 

Let’s look at some key strategies for success with the subscription model.

Strategies for Maximizing ROI with the Subscription Model

When it comes to maximizing ROI with Twitter’s subscription-based model, developing a comprehensive strategy is essential. 

This should include researching the platform and its features, understanding the target audience, and setting measurable goals.

 Advertisers should also consider creating content that resonates with their target audience to maximize engagement. This can be done by utilizing visuals such as images and short videos, using storytelling techniques, and leveraging influencers who have an established presence on the platform.

Optimizing content for maximum engagement is key when trying to get the most out of Twitter’s subscription-based model. To do this effectively, advertisers need to create compelling texts that draw readers in and use hashtags strategically throughout their posts, so they are more likely to appear in search results.

Moreover, advertisers need to remain abreast of industry trends to stay ahead when captivating their followers with current topics or stories pertinent to their brand’s identity and product offerings.

Finally, automation tools can help streamline processes associated with managing campaigns on Twitter’s advertising model, such as scheduling posts in advance, saving time while still ensuring content reaches its intended audience at optimal times for maximum visibility and engagement potential. 

FAQs about Musk’s Purchase of Twitter

We’ve taken the time to answer some of the most frequently asked questions about Elon Musk’s acquisition of Twitter:

What is Elon Musk’s Strategy With Twitter?

Elon Musk’s end goal for Twitter is to turn it into an “everything app“. That means that he wants Twitter to become a place where a user could, theoretically, do everything from shopping to watching videos or even use it as an e-wallet, like Paypal (a company that Musk used to be part of).

What is the meaning of Elon Musk buying Twitter?

Depending on who you ask, Elon Musk’s purchase of Twitter was not something he wanted. The purchase came after some Tweets that did not seem to be serious, but he signed documents that assured that the purchase would go ahead. 

However, after the purchase, it seems that he concluded that the company did not make enough money, which is something that he had to know beforehand – it wasn’t properly a secret that Twitter was not very profitable, if at all. 

With his other companies, SpaceX and Tesla, tanking value in the markets, paired with the purported multi-billion dollar loans he took to acquire Twitter, it is hard to know what this will mean for Twitter and Elon in the future. 

KLR Agency’s Final Thoughts

Twitter Blue was certainly a big move from Musk, but it maybe wasn’t what the platform needed. Paired with changes to the advertising system, which were also not well received, Twitter has lost many customers. 

Despite this, Elon Musk still boasts that the company is more lucrative than ever and that the number of users has only increased since he acquired the platform.

Advertisers must be mindful of the potential advantages, difficulties, and tactics linked to this new system to get optimal returns. 

While there are certainly some obstacles that must be overcome, understanding how to use the new ad model effectively can help ensure success for any advertiser looking to capitalize on Elon Musk’s purchase of Twitter. 

By leveraging these insights, advertisers can make sure they’re making the most out of their investments when it comes to utilizing this platform.