X offers 50% off ads in bid to revive advertiser interest
Will Twitter X's rebranding of Twitter affect advertisers' attitudes toward the platform?
Certainly, X itself seems to be aware of the change in perception as it makes moves to bring back advertising partners and emphasize the benefits of X ads.
X officials and Elon Musk have been busy beefing up in-app ad campaigns, increasing their reach, which could be another way for X to add value to its advertising offerings.
This week, X Corp is offering 50% off to advertising partners.
According to the WSJ:
"X this week began offering some advertisers discounted prices on video ads that show up alongside a list of popular topics on X's "Review" tab [...].
Twitter's overall ad revenue is still down 50% from last year, according to Ilon's latest statements, so the steps to remedy the situation should be many and varied.
We still have negative cash flow due to about 50% drop in ad revenue and a large debt load. Need to achieve positive cash flow before we can afford the luxury of anything else.
- Elon Musk (@elonmusk) July 15, 2023.
That "debt load" stems from the $13 billion in bank loans Musk took out as part of his $44 billion acquisition of the company, saddling Twitter with an additional $1.5 billion a year in interest payments.