Elon Musk: Twitter to stop running ads from non-subscribers from April 21

Twitter, a microblogging website, has announced that as of Friday, April 21, 2023, users who do not subscribe to Twitter Blue will no longer be able to run advertisements on the platform. This came after millions of accounts on the network had their heritage blue checks removed as Elon Musk keeps up his aggressive campaign for more subscriptions.

While this may result in a further decline in Twitter’s already-dwindling revenue from advertisements, the firm is expected to make more money from subscriptions as many organizations and people who were previously given the blue checkmarks will no longer be required to subscribe.

Broad verification strategy

Twitter in a notice sent to advertisers on the platform and titled ‘Building a better Twitter through verification’ stated:

• “Starting April 21, your @account must have a verified checkmark or subscribe to either Twitter Blue or Verified Organizations to continue running ads on Twitter. Business accounts spending in excess of $1000 per month already have gold checks or will soon, and they’ll continue to enjoy access to advertising without interruption at this time.
• “This change aligns with Twitter’s broader verification strategy: to elevate the quality of content on Twitter and enhance your experience as a user and advertiser. This approach also supports our ongoing efforts to reduce fraudulent accounts and bots. Subscribing to either of these services means you have been verified by Twitter as a real person and/or business.
• “Amongst other features, you’ll have a more visible organic presence and a broader range of creation tools. We’re excited for you to get started and to benefit from a superior Twitter experience.”

Twitter’s ad revenue projected to fall

Before now, Twitter’s ad revenue has been projected to by 28% in 2023. Analysts at Insider Intelligence said they were slashing an earlier worldwide revenue estimate of $4.74 billion by more than a third to $2.98 billion as trust in the platform deteriorates.

In a report released earlier this month, Principal Analyst at Insider Intelligence, Jasmine Enberg, said:

“The biggest problem with Twitter’s ad business is that advertisers don’t trust Musk. Twitter needs to unravel Musk’s personal brand from the company’s corporate image to regain advertiser trust and bring back ad dollars.”

Musk’s tumultuous takeover of Twitter has already seen several major advertisers suspend their activity on the platform after the Tesla tycoon loosened the reins on content moderation and laid off over half of a 7,000-strong workforce.

According to research firm Pathmatics, in January fourteen of the top 30 advertisers on Twitter stopped advertising on the platform since Musk took charge on October 27. Insider Intelligence noted that Musk’s efforts to build up a subscription service “won’t make up for the lost ad revenue.”

Musk bought Twitter for $44 billion. Musk, however, said he realized after taking over that the company’s value is worth half the price, which explains why he is aggressively pushing for paid subscriptions to shore up the company’s revenue.