Twitter no longer ‘high risk’ after new boss hires, major ad group says

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GroupM, owned by WPP, one of the world’s leading media agencies, told clients it no longer considers Twitter “high risk,” just days after Elon Musk named advertising advocate Linda Yaccarino as the platform’s new head. of social media.

Musk last week announced that he had taken over Yaccarinoformer head of advertising at NBCUniversal, to run Twitter while remaining as chief technology officer and executive chairman.

The move marked a push to woo back dozens of major advertisers who exited the platform due to Musk’s unorthodox leadership style and looser content moderation following its $44 billion acquisition. The exodus wiped out about 50% of Twitter’s $5 billion-a-year revenue.

In November, GroupM designated Twitter as “high risk” due to its concerns about the platform. But the agency removed that rating on Monday, three people familiar with the situation said, a move that will likely encourage its clients to ramp up their ad spend again.

GroupM held off until there was a “return to normality” in terms of the amount of malicious content on the platform, which had increased since the Musk acquisition, said a person familiar with the matter.

The person said the group was waiting for Musk to repopulate his senior leadership team, while also working with Twitter to improve “brand safety,” an industry term that refers to the risk of ads appearing alongside content problematic and misinformation.

“While the job isn’t done, there have been material improvements,” the person said, adding that he was “cautiously optimistic” about Yaccarino’s appointment.

GroupM declined to comment.

Other ad agencies said brands are warming to the idea of ​​returning to Twitter.

Sir Martin Sorrell, head of S4 Capital, said “it’s the start but his appointment will encourage clients to take another look.” He added, “Linda will make a difference if she’s given the leeway.”

Ben Foster, managing partner for digital at The Kite Factory, said the “hardline approach” taken by some Twitter opt-out brands is starting to soften.

However, she added, “I’d say Elon and Linda still have their work cut out for them to fully convince everyone to advertise on the platform at scale.”

Omnicom Media Group said, “We continue to work with Twitter’s leadership – current and upcoming, such as media expert Linda Yaccarino – ensuring the platform lives up to the high standards of customer brand safety we demand. to every publisher to have in place. Our customer guidance is not dictated by stocks or speculation, but by verifiable actions. “

In his six months at the helm of Twitter, Musk initially tried to curry favor with advertisers, the platform’s main source of revenue, by promising them it wouldn’t become a “free-for-all hell.”

However, many top brands such as Mondelez, Carlsberg and United Airlines have suspended spending on the platform. In some cases, Musk has personally called brand CEOs to reprimand them for curbing publicity, as well as threaten to publicly “name and shame” those involved.

Industry insiders predict Yaccarino will be able to mend ties, noting her reputation for strong relationships as a Madison Avenue veteran.

His appointment comes as Musk has sought to boost Twitter’s dwindling finances, laying off at least 80% of its workforce, undergoing significant cost-cutting efforts, and looking for ways to generate new revenue.

The person familiar with GroupM’s decision said that in addition to Yaccarino’s appointment, the agency had been reassured by Musk allowing independent third parties to verify Twitter’s claims that the amount of malicious content on the platform had returned to pre-level levels. -capture, that impressions of toxic content were low and rarely ran alongside advertising.

Despite its overtures to advertisers, Twitter remains embroiled in a spat with Microsoft. On Thursday, the social media company sent a letter, obtained by the Financial Times, to Microsoft chief executive Satya Nadella, accusing the company of using Twitter’s data tool for “unauthorized uses and purposes”.

In the letter, Musk’s attorney, Alex Spiro of Quinn Emanuel Urquhart & Sullivan, asked Microsoft to undertake a “compliance audit” of his past use of Twitter’s application programming interface, or API, which gives access to Twitter’s public data. It comes after Musk recently introduced an expensive paywall for accessing his API, prompting Microsoft to cut the platform from its social media management tool.

Microsoft confirmed receipt of Thursday’s letter, which was first reported by the Wall Street Journal.

Additional reporting by Richard Waters in San Francisco