According to an internal memo obtained by The Verge, one of the world's biggest ad firms, representing brands like McDonald's, Apple, and PepsiCo, is suggesting clients not spend money on social media.
According to a note titled "Twitter - Continued Brand Safety Concerns," clients are being advised to stop activity on the micro-messaging site. Recent events in the last few days have potentially serious implications for brands that run ads on the platform, according to a memo.
Most would find the risk of brand safety unacceptable.
The memo states that the layoffs of trust and safety teams, the resignations of high-profile executives, and the number of fake accounts are important issues for advertisers. Most would find it unacceptable that the risk to our clients' brand safety has risen sharply. If the platform can prove that it has reintroduced safeguards to an acceptable level and has regained control of its environment, we recommend suspending activity on the platform.
The memo says that the issues will not impact compliant processes, operations, products, brand safety and client investment on the platform in any way, but because of the lack of senior leadership now in these.
It is the latest in a string of advertisers that have changed their plans due to the chaos at the micro-blogging site. According to CNBC, another ad agency recommended its clients to stop advertising on the social networking site. General Mills, Volkswagen, and other companies have stopped spending money on ads on the social networking site.
Despite Musk's questionable efforts at soothing their concerns, advertisers are worried about their content showing up next to an influx of hate speech They are worried about Musk's threats to advertisers who pull their money from the platform.
Roughly half of the company's revenue would need to come from subscriptions, according to an email sent by Musk to employees. In the last few days, the premium tier for $7.99 a month that Musk has been pushing, has been through a lot of changes. It was just days after the launch that the service was suspended.
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