Twitter has announced that it has reversed its ban on advertising that targets political content, a move that is aimed at helping to curb the costs of its growing advertising business. The social media company will also allow ads that include "cause-based" messaging. Its decision to do so is in line with a similar policy introduced by Facebook, which also allows its users to place ads that include messages that promote causes.
Reverses ban on political ads
Twitter is getting ready to lift its ban on political ads. After a lengthy ban that has left the platform without an advertising revenue source, Twitter CEO Elon Musk has reversed his decision.
Twitter was one of the most heavily criticized social media platforms in the lead-up to the US election. Many believed that Twitter and other social media companies were spreading misinformation to voters. It was also accused of promoting hate speech.
In the lead up to the midterms, political advertisements on Twitter accounted for just a small slice of its revenue. The company had warned that these ads could bring in more money, but didn't see a strong enough return.
Twitter's co-founder Jack Dorsey pushed for a policy change. He said that the social network needed to be more proactive, as many users were complaining about election misinformation. But he also argued that the platform's advertising policy was inconsistent.
Aligns with other major social media companies
Twitter announced this week that it would be relaxing its policy on "caused-based" advertising. In doing so, it is joining the ranks of major social media companies in allowing some form of political content to be advertised on its platform. However, it is not clear why the company would choose to do so.
Twitter's decision comes a year after the company first imposed a ban on politically-motivated content. The move was driven by CEO Jack Dorsey's desire to prevent the company from becoming a political punching bag, but its impact on advertisers has been minimal.
The company's announcement accompanied a spike in hate speech on the microblogging platform. And while Twitter's announcement may have been the big news of the day, the company's financial woes have left the platform struggling to maintain its status as a viable business. It is unclear whether the company will make any money from its new ad policy, but there is a chance that it could earn more than it loses.
Allows cause-based ads
This month Twitter announced a rewrite of its advertising policies. The company said it will let advertisers place so-called "issue" ads, such as a "smartphone ad" or "nano ad" that promotes a cause. However, the company will not let marketers buy Twitter ads that target users' interests. A spokesperson said Twitter had not ruled out allowing a slew of other types of ads, such as those that target users' demographics, or location. Similarly, the company did not rule out letting advertisers buy ads promoting political or religious views.
Twitter has already rolled out a number of other ad-related improvements, including a new verification system, better targeting and targeting tools for its advertisers, and an improved user interface. In addition, it has a new CEO. While the company hasn't made a profit since Elon Musk took over in October, he has been quick to cut costs. For instance, the company recently cut staff by 50%.
Cost-cutting measures
Twitter has announced plans to ease its restrictions on political advertising. The change will include allowing ads that are cause-based, which refers to content that raises awareness or educates. This could promote issues such as climate change or voter registration.
Before Elon Musk took over as the CEO of Twitter, the social network had banned political ads. As a result, advertisers, including major brands, have been shying away from the platform. However, the new policy is aimed at raising revenue and bolstering its position as a leading social media platform.
While Twitter has yet to provide details, the move will align its ad policy with others in the media industry. It also will expand its coverage of political issues.
During the recent midterm elections, Twitter saw over $3 million in revenue from political ads. That is down from the $6.2 billion that was spent during the same period last year.
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