In a significant shift, GroupM, the world’s leading media investment management group, has reassessed its evaluation of Twitter as a high-risk advertising platform following the appointment of a new CEO by tech entrepreneur Elon Musk.
GroupM, which helps clients deploy digital ads across various platforms, had previously labeled Twitter as high-risk in the wake of Musk’s acquisition of the social media giant, citing various issues creating instability on the platform. This meant that for GroupM’s clients, advertising on Twitter could pose significant brand risk.
Given Musk’s unpredictability, this decision came as little surprise to the industry. However, with Musk’s recent appointment of Linda Yaccarino, former ad executive of NBC Universal, as Twitter’s new CEO, GroupM perceives the risk to be significantly decreasing, making it once again viable for clients to advertise on Twitter.
Yaccarino, set to take over as Twitter’s CEO around July, brings a wealth of experience from the advertising industry. Musk, in turn, will be focusing on the technical and product aspects of Twitter.
For GroupM, Yaccarino, a well-known figure within the industry, represents stability in terms of product and ad operations, a stark contrast to Musk’s often erratic behavior. Consequently, GroupM believes the risk associated with advertising on Twitter has dropped significantly.
GroupM will reportedly continue working closely with Twitter to ensure no problematic content surfaces in its clients’ ads on the platform. Although this change of stance may be seen as a slight to Musk, it’s not seen as an issue for either Twitter or Musk himself. In fact, the recommencement of advertising activity by GroupM on Twitter should result in a much-needed boost to the platform’s revenue.
Musk has previously spoken about the financial strains facing Twitter, with advertising being one of the main pillars of Twitter’s income. Since Musk took over, numerous advertisers had put their Twitter ad campaigns on hold, undoubtedly impacting the platform’s revenue. GroupM’s revised assessment, therefore, could not have come at a more crucial time.