Twitter no longer ‘high risk’ after Musk replaced, says leading advertising agency
Twitter is no longer “high risk” for brands after Elon Musk hired a seasoned marketing executive as the company’s new boss, a leading advertising agency said.
GroupM, which is part of the London-listed ad group WPP, previously warned clients about advertising on the social media site in the wake of Mr Musk’s $44bn (£35bn) takeover last year.
But the agency has rowed back following the appointment of Linda Yaccarino, former head of advertising at US media giant NBCUniversal, as the platform’s chief executive.
Ms Yaccarino’s appointment has been widely welcomed by advertisers after months of turmoil sparked by the Tesla billionaire’s troubled reign at Twitter.
Brands have cut back spending on the platform sharply due to concerns about Mr Musk’s controversial statements and seemingly off-the-cuff approach to management.
Data from Sensor Tower shows that 16 out of the top 25 US advertisers on Twitter had stopped advertising completely on the platform in the first quarter of 2023, including Procter & Gamble and Best Buy.
Ad tycoon Sir Martin Sorrell described Ms Yaccarino as “very effective”, adding: “She’s probably just what clients need to establish trust and confidence.”
GroupM, which is the world’s largest media buying agency, was waiting for a “return to normalcy” before removing its designation of Twitter, an insider told the Financial Times, which first reported the move.
The source added that the company had been waiting for Mr Musk to overhaul his leadership and improve brand safety on the platform.
GroupM has been contacted for comment.
It came as Twitter accused Microsoft of improperly using the social media company’s data, raising the prospect that Mr Musk might try to start charging the tech giant for its data.
