Twitter CEO Jack Dorsey announced in a tweet thread today that his company would stop running paid political ads.
The decision contrasted sharply with Facebook’s Mark Zuckerberg positioning, but the real-world impact on Twitter’s ad business will be negligible.
EMarketer estimates that Twitter will bring in $1.57 billion in ad revenue in 2019, total political ad spend for the 2018 midterms was less than $3 million, according to CFO Ned Segal.
Experts also told Business Insider that the platform is more valuable for gaining influence among media elites and those with organic reach, calling Dorsey’s decision a shrewd PR play.
Still, the move prompted President Trump’s campaign to state incorrectly that the company had thrown away “hundreds of millions” in potential ad revenue.
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Twitter CEO Jack Dorsey scored an easy PR victory today by announcing that his platform would no longer run paid political ads.
Dorsey tweeted the announcement to counter Facebook CEO Mark Zuckerberg’s arguments for running political ads — including those that feature lies from elected officials.
Twitter would not elaborate on Dorsey’s tweets.
Experts agreed that the decision would have a negligible effect on Twitter’s business.
EMarketer estimated that the platform would bring in about $1.57 billion in total ad revenue in 2019. But Twitter CFO Ned Segal wrote that his company took in less than $3 million in sponsored political tweets during the 2018 midterms.
Since we are getting questions: This decision was based on principle, not money. As context, we’ve disclosed that political ad spend for the 2018 US midterms was …read more
Source:: Business Insider