TECHNOLOGY:Elon Musk admitted that keeping the social network running is proving to be a challenge after multiple rounds of layoffs, but he offered an optimistic picture for how Twitter can improve the advertising business he helped derail and boost its bottom line on Tuesday. Elon Musk also acknowledged that Twitter can improve its bottom line.
Musk presented his plan to boost Twitter’s core advertising business by adopting the standard strategy of the majority of the company’s peers in remarks made at a Morgan Stanley Conference: enhancing the relevance of the advertisements it serves.
Musk stated, “The advertising relevance is the most gigantic thing.” Additionally, and this is going to sound completely bizarre, until three months ago, Twitter did not consider relevance in advertising.
Musk stated that he believes Twitter has “got a shot at being cash flow positive next quarter” as a result of that change and larger cost reductions throughout the organization.
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Musk stated, “In the future, Twitter will have very relevant and useful advertising.” Additionally, due to its current utility and relevance, there will be a significant rise in revenue. As a result, I have high hopes for the future. It’s been a truly challenging four months, however I’m hopeful about what’s in store.”
Musk has relaxed some content moderation policies, reinstated incendiary accounts, and made a number of erratic remarks regarding politics and world affairs since taking over the platform at the end of October. As a result, top brands have left Twitter in large numbers. Musk, who has previously expressed his disdain for advertising in tweets, made a hasty bet to promote a paid subscription service instead, but it is said to have failed to gain traction.
He also took the time to thank the advertisers, including Disney and Apple, who have stuck with Twitter throughout his rocky takeover.
However, despite Musk’s efforts to expand Twitter’s advertising business, which has historically generated nearly all of the company’s revenue, genuine doubts remain regarding the platform’s viability.
Since Musk took over, Twitter has experienced a slew of service disruptions and user issues, including a significant outage on Monday. These issues are likely connected to the numerous rounds of mass layoffs that Musk oversaw. On Tuesday, he attributed some of the most recent service disruptions to the “overly complex” underlying technology.
Musk stated at the event on Tuesday, “The code base is like a Rube Goldberg machine, and when you zoom in on one part of the Rube Goldberg machine, there’s another Rube Goldberg machine, and then there’s another one.” As a result, it is quite challenging to maintain this system and, consequently, to advance the product due to its extreme complexity.
He stated, “We’ll make a change that appears to be a small change somewhere, but actually causes a huge disruption.” “What was supposed to be a small change to 1% of the Twitter user base [that] ended up being a catastrophic change to 100% of the Twitter user base,” Musk said of the outage on Monday.
At the same time, Musk keeps making controversial comments that might make brands think twice about returning to the platform or spending more money there. This week, Musk was criticized for making fun of a disabled Twitter employee who asked the company’s owner if he had been laid off.
At Tuesday’s occasion, Musk went on a progression of irrelevant digressions, including over and over focusing on old guard media associations. ” Musk stated, “You know, use Twitter yourself and believe what you see on Twitter, not what you read in the newspapers. That’s what I’d say to advertisers and brands.” Because what you read in newspapers is not the same as what you see on Twitter.
