More advertising and sponsored content from Peugeot, Citroën and Fiat on Twitter. This is the decision made by the automotive group Stellantis after the takeover of the social network by Elon Musk.
“We are suspending paid advertising posts until we have a better understanding of the future of the platform under its new leadership,” the automaker said in a statement to Reuters.
The automotive group born from the merger of Fiat Chrysler with Peugeot PSA thus joins the list of advertisers who have decided to pause their advertising investments on Twitter.
A loss of 4 million per day
In recent days, the airline United Airlines, the food group General Mills, the pharmaceutical group Gilead and above all the car manufacturers General Motors and the US subsidiary of Audi have cut their marketing expenses on the platform. For the latter, it’s also about cutting a competitor’s revenue. Elon Musk has pledged part of his Tesla shares to fund the social network.
A leak of advertisers that the new owner of Twitter does not deny. The billionaire claimed that since taking control from him, the company had suffered a massive drop in revenue with an estimated loss of $4 million per day.
Troubling news as Elon Musk went into debt to the tune of $13 billion to pay for the platform for the blue bird. Although the interests of the debt contracted by Twitter ascend until now to 50 million dollars per year, the financial arrangement of its new owner could, according to the Wall Street Journal, increase the amount of the reimbursement to 1,000 million dollars per year. .
To achieve this without further injection of liquidity, the head of Twitter has new subscription services or even a fully paid version of the social network.
Source: BFM TV
