Twitter to focus on video, commerce in business revamp - investor presentation

MediaX

16/06/2023 21:41

(Adds details from investor presentation)
    By Sheila Dang
       June 16 (Reuters) - Twitter plans to focus on video,
creator and commerce partnerships to revitalize the social media
company's business beyond digital advertising, according to an
investor presentation by owner Elon Musk and new Chief Executive
Linda Yaccarino that was reviewed by Reuters.
    Yaccarino, who started as CEO on June 5, told Twitter
investors on Thursday that the company is in early conversations
with political and entertainment figures, payments services and
news and media publishers on potential partnerships, said a
source familiar with the matter, who spoke on condition of
anonymity to discuss a private investor call.
        The presentation was Yaccarino's first time addressing
the company's investors, the source said.
    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.
        Some ad-buying firms had recommended their clients pause
ad spending on Twitter after Musk's takeover. Those
recommendations have been reversed and none of the major
advertising holding companies are currently recommending a
pause, according to a slide shown during the presentation.
    Well-known brands including Warner Bros, Mondelez,
McDonald's and Walmart have resumed advertising on Twitter after
initial pauses, the slide said.
    Yaccarino told investors that ad spending in several
advertiser categories is now up at least 40% year-over-year,
including health, consumer packaged goods and financial
services, the source said. 
    A Twitter executive declined to comment.
     
    VIDEO AND COMMERCE
    Under Musk, Twitter changed its business name to X Corp.,
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.
    Twitter is applying for "money transmitter licenses" in all
50 U.S. states, according to a slide from the presentation. 
    The company has also focused on growing video content on the
platform. Vertical video now accounts for more than 10% of time
spent on Twitter, another slide said.
    Former Fox News host 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, the
source said. 
    Yaccarino has also told colleagues in recent days that Musk
has expressed strong support for her ideas and the working
relationship was off to a positive start, the source added. 
     
  

 (Reporting by Sheila Dang in Dallas; Editing by Jonathan Oatis
and Daniel Wallis)
 ((mailto:Sheila.Dang@thomsonreuters.com; +1 646-983-0894;))