Billionaire Elon Musk paid $44 billion to buy Twitter on October 27. One of the factors that prompted him to work quickly to discover new sources of income to revitalize the platform was this huge cash.
On November 4, the billionaire kicked off a sweeping cost-cutting initiative by cutting 3,700 positions, or half of Twitter’s workforce, in a single day. Additionally, it recently introduced a new Twitter Blue membership model by including the account authentication badge and increasing the monthly fee to $7.99.
Musk is aware that advertising will generate most of the company’s revenue. He wants a bigger slice of the lucrative online advertising business, which has been split for years between TikTok, Meta Platforms (META), Alphabet (GOOGL) and its YouTube subsidiary. Musk is following a two-pronged plan to do this.
If Twitter could handle the full length videos I produce and could offer a monetization system similar to what YouTube offers, I would surely consider uploading my full length videos here as well. https://t.co/JsYw9DI9oO
— Everyday astronaut (@Erdayastronaut) November 5, 2022
The first stage is to keep existing advertisers who worry that Twitter’s absolutist protection of free speech will lure extremists, such as followers of conspiracy theories, misinformation, and racial and anti-Semitic rhetoric, back to the platform.
By assuring them that Twitter will not become “hell,” Musk has tried to use both carrot and stick. Furthermore, he threatened to embarrass them in front of his 114.3 million followers if they stopped advertising their products and services online.
The second prong of the approach is to overtake the market share of the major players in the lucrative advertising business, including YouTube, Instagram, Facebook, Snapchat and TikTok.
To achieve this, the serial entrepreneur wants to completely redesign Twitter to attract creators to the network. He wants to steer creators away from rival platforms and persuade them that Twitter is the place to be right now.
We can now do 42 minute chunks at 1080 resolution for the new Blue, so you could split a longer video. The 42 min limit should be set next month.
How does YouTube monetization work and what could Twitter do better?
— Elon Musk (@elonmusk) November 5, 2022
Musk is aware that while his name and position will get creators and influencers to pay attention to him, it will take more to convince them to develop original content for the platform or leave the competition. He wishes to deploy the heavy artillery as a result.
He pointed his camera at YouTube. Content creators would receive a much larger share of what the video platform now pays them thanks to Twitter’s revenue-sharing program, he just promised. Advertisers are courting creators and influencers because they want to promote their products in trending content for as many people as possible to see.
The statement was made as part of a Twitter exchange between Musk and creators, to whom he explained the improvements Twitter will be making to allow them to showcase their talents more effectively.
One producer wrote to the billionaire saying: “I would definitely consider posting my full videos here too, if Twitter could handle the full videos I produce and could offer a payment scheme comparable to what YouTube offers.
YouTube gives creators 55% of ad revenue, FWIW.
— Quinn Nelson (@SnazzyQ) November 5, 2022
Musk will pay creators better than YouTube
“Now we can split a larger movie into 42-minute chunks at 1080 HD for the new Blue. Next month, the 42-minute limit should be set, Musk said.
He then asked how YouTube monetization works and what Twitter can do to improve it.
Another creator responded: “With Munro Live @live munro we get about $7 per 1000 views. “For 3.3 million views of Sandy’s chat with you, we earn approximately $22,000. It would be ideal if we could receive a small portion of the revenue from Twitter Blue and 40% of the advertising that appears in long-form content.
“Interesting,” Musk said.
Another social media influencer stated, “YouTube gives creators 55% of ad dollars, FWIW.” And at that moment, Musk made a statement that will undoubtedly have a big impact in Silicon Valley, where platforms like YouTube, Instagram, Facebook and Snapchat are already doing everything they can to slow down the growth of TikTok.
Due to its growing attraction to Gen Zers, the short-form video platform has become a top choice for advertisers trying to grow their clientele and attract the next generation of buyers.
YouTube gives creators 55% of ad revenue, FWIW.
— Quinn Nelson (@SnazzyQ) November 5, 2022
Or, put another way, Twitter will donate more than 55% of the advertising revenue produced by your content. Depending on the platforms and the length of the video, different revenue sharing methods apply.
Producers receive 55% of the ad dollars for the longest videos on YouTube, and YouTube receives 45%. With only 45% of the total revenue going to creators, the short version tweaks this.
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Categories: Technology
Source: vtt.edu.vn