According to the New York Times' Dealbook Summit, Musk unceremoniously said that he doesn't want these big companies trying to "blackmail him with money" to advertise on his social ** platform X. This tough stance is undoubtedly a direct challenge to the large companies that have been advertising on Musk's platform for a long time.
However, on Friday, platform X gave a direct response to this challenge: it will double down on the direction of making it easier for small and medium-sized enterprises to advertise, in an attempt to hedge against the impact of big advertisers leaving the platform. SMEs are a very important engine, but have been neglected for a long time, the company said. This shift in direction is both an immediate action and a long-term plan.
To achieve this, Platform X revealed that the company is in the process of establishing ties with third parties, such as Jumpcrew, a US-based marketing start-up, that will outsource some of its advertising sales to target SMEs. At the same time, the company also plans to develop more subscription and data licensing services. This series of measures is undoubtedly a strong attraction for small and medium-sized enterprise advertisers.
However, the road ahead is not smooth for the X platform. According to previous reports, the company could lose up to $75 million in the current quarter due to the departure of big advertisers from the platform. But on Friday, Platform X refuted this, saying that the actual decline could be around $10 million to $12 million. Still, this number has taken a toll on the company.
In addition, the X platform faces another hard expense — Musk took on huge debt after spending $44 billion to buy Twitter (which was later renamed X) last year. It is reported that the annual interest will exceed $1 billion. Last month, however, the company revealed to employees that it was now valued at just $19 billion. This number makes people can't help but pinch a cold sweat for the future of the X platform.
Despite the financial pressure, there is no turning back for the X platform. Under Musk's leadership, the company must find a new profit model to deal with the current predicament. Shifting the focus to SME advertisers and developing more subscription and data licensing services is undoubtedly the most immediate and effective response strategy for the company at present.
This is undoubtedly a major positive news for small and medium-sized enterprises. With the X platform as a powerful social channel, they will have more opportunities to showcase their products and services and interact with a wider audience. The X platform will also take this opportunity to expand its user base and enhance its competitiveness and profitability.
However, for those large companies that have been advertising on the X platform for a long time, they may feel a little disappointed and uneasy. They may need to make adjustments to their advertising strategy to accommodate this new change. At the same time, they also need to re-evaluate the value and potential of the X platform as an advertising channel.
For the advertising industry as a whole, this move by Platform X will also have far-reaching consequences. On the one hand, it will accelerate change and innovation in the advertising industry, pushing the industry in a more diverse and equitable direction. On the other hand, it will also increase the competitive pressure in the advertising industry, prompting major advertising companies and enterprises to pay more attention to improving the quality of advertising and user experience.
AI assistant creation season In short, Musk's foul talk show is not only a direct challenge to big advertisers, but also a reshuffle of the entire advertising industry. This series of initiatives of the X platform will also have a profound impact on the entire industry. In the future, the advertising industry will pay more attention to equity and diversity, and will also pay more attention to improving the quality of advertising and user experience. For small and medium-sized enterprises, they will usher in a fairer and broader advertising platform.