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X (Twitter) slashes video ad prices to lure back advertisers

Elon Musk has significantly discounted ad prices on X – the social networking platform previously known as Twitter.

For a limited time only, select marketers in the U.S. and UK can save up to 50% off of new bookings until July 31.

The platform reportedly claims it is running these promotions to boost reach for marketers during high-traffic periods, such as the Women’s World Cup, in an email seen by the Wall Street Journal.

Why we care. Whether you’re a marketer that has taken a step back from X or you’ve never purchased ad space from the platform before, now may be a good time to reconsider and start making it part of your advertising strategy as the financial risk has been significantly reduced. X also still has 450 million daily active users worldwide, so reach potential is huge and could hep brands connect with previously untapped audiences, which could lead to improved ROI.

How it works. The discounts are only being offered to select marketers that are running video ads alongside trending topics in X’s ‘Explore’ tab. These ads provide brands with a 24-hour placement at the top of X’s trending topics list. A spokesperson reportedly said:

  • “The goal of these discounts is to help our advertisers gain reach during crucial moments on Twitter such as the Women’s World Cup.”

The catch. In addition to offering marketers a range of ad discounts, X has warned that they will risk losing their verified status if they do not reach minimum spending thresholds.

Brands are expected to spend at least:

  • $1,000 on ads in the previous 30 days
  • $6,000 on ads in the previous 180 days.

This new rule goes into effect Aug. 7. Brands that lose their verified status are vulnerable to impersonation attacks, which can cause damage to a business’s reputation.

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Why now? Twitter’s ad revenue has recently plummeted by 59%, following an exodus of big spending advertisers after Musk took over Twitter.

  • Although the ad industry, in general, has taken a hit on ad spend, Twitter appears to be more impacted than others – with many blaming Musk for marketers’ reluctance to invest in its ad space.

A race to the bottom? Following Twitter’s rebrand to X, the company is now trying to rectify the situation by tempting advertisers back to the site via discounted rates.

  • With Musk aiming to make the platform cash-flow positive again by as early as Q3 2023, luring advertisers back with such huge discounts at this point isn’t surprising.

Deep dive. Read Twitter’s Ad Pricing policy for more information on its ad prices.

The post X (Twitter) slashes video ad prices to lure back advertisers appeared first on Search Engine Land.

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