Sponsorship deals arranged before Twitter’s change in ownership may prove very helpful for a business facing revenue issues.
Key Details
- Twitter lost a significant portion of its sponsorship and advertising revenue following Elon Musk’s purchase of the social-media giant in late October—losing as much as 80% of its revenue.
- The company has made substantial efforts to incentivize previous advertisers with deals and to loosen its rules for political advertising to attract new revenue sources.
- Multi-year advertising deals signed before Musk’s Twitter takeover are set to run content from dozens of major sports, news, and entertainment outlets in 2023 as part of the Twitter Amplify program, Axios reports.
- The list of notable sponsors includes the NFL, NBA, NHL, MLB, NASCAR, PGA, CBS Sports, Turner Sports, ESPN, FOX, Univision, Telemundo, Wall Street Journal, NBCU, Reuters, Axios, Bloomberg, Forbes, Conde Nast, USA Today, Disney, Paramount, CES, and the World Economic Forum.
Why It’s News
The mass advertising pullout was unlikely to be a permanent feature, as the social-media giant is still a significant opportunity for advertisers. In the months following Musk’s takeover, the company has seen sporadic interest from major advertisers again. Amazon and Apple opened negotiations again following security improvements in early December.
While these new sponsor deals predate Musk’s takeover, it is likely that their continued interest in Twitter will help chill concerns about advertising with Twitter and increase advertising opportunities going into 2023.
“The top topics on Twitter by impression share in most of quarter four 2022 were entertainment, sports, fitness, politics, food & beverage, financial services, news, and technology. Most social media boycotts don’t last forever. Fox News went quiet on Twitter for over a year, only to return in 2020 during the coronavirus news cycle. At a tough economic moment for the media industry, Twitter has proven too useful to give up,” says Axios.
