Elon Musk Plans to Roll Out Zero Ads Subscription Model for Twitter

UTC by Tolu Ajiboye · 3 min read
Elon Musk Plans to Roll Out Zero Ads Subscription Model for Twitter
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Tesla CEO Elon Musk intimated plans to revamp Twitter ads, including a zero ads subscription option for interested users.

Elon Musk plans to implement a zero-ads subscription model on the popular microblogging platform Twitter. The Tesla chief executive’s intent to revamp Twitter advertisement frequency and size is part of ongoing improvement processes at the company.

Commenting on his proposed higher-priced zero-ad subscription model development, Musk said:

“Ads are too frequent on Twitter and too big. Taking steps to address both in coming weeks.”

Musk also explained that Twitter supports its advertising partners via new code and algorithms. According to him, this development could enhance advertising strategy by making displaying peddled items more timely and relevant. In Musk’s own words:

“We’re approaching [the advertising strategy]; how do we get the ad to be as close to content as possible? If you’re shown an opportunity to buy something you actually want, that’s great — that’s the content, you’re serving someone’s need.”

However, the outspoken billionaire businessman did not provide additional details on the scheme’s implementation steps or exact pricing.

Musk to Diversify Twitter Revenue Streams

Since acquiring Twitter in October, Musk has sought to diversify the platform’s business from advertising revenue. Earlier this month, the social media company also announced it would relax its cause-based advertising policy. In addition, Twitter is looking to align its ad policy with television and other media outlets.

Elon Musk also previously proposed “Twitter Blue” subscriptions as another avenue to earn revenue outside standard ads. This service model sees subscribers pay a monthly fee of $8 to get verified check marks on their profile pages. At the time, the Tesla CEO was open to accepting payment for Twitter Blue in Dogecoin (DOGE).

Prior to Musk’s overhaul of Twitter Blue, the company reserved the right to confer said check marks.

Twitter Ads on Decline since Acquisition by Elon Musk

Twitter has seen a remarkable decline in advertising activities and subsequent revenue since Musk took over the company. Numerous high-profile companies have pulled back from the site, pausing promotions, amid concern regarding its moderation policies. Companies that halted ads on Twitter include General Motors Corporation (NYSE: GM) and Oreo Cookie maker Mondelez International Inc (NASDAQ: MDLZ). At the time, Musk addressed the cessations, saying:

“I understand if [advertisers] want to kind of, you know, give it a minute and kind of see how things are evolving. But really, you know, the best way to see how things are evolving is just use Twitter.”

This advertising pause arguably also plays favorably into Musk’s overarching agenda for the company’s revenue streams. He previously stated that he did not want Twitter to become a “free-for-all hellscape.”

Twitter recently relaxed a three-year ban on political advertising as part of its continued policy transition. Furthermore, the social media company reportedly cut around 40 of its advertising data scientists and engineers at the turn of the year.

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