Elon Musk hopes to restore lost advertising revenue with X ad discounts, which may have come at a crucial moment for crypto companies.
The company formerly known as Twitter is cutting prices for new ad bookings by 50% to restore positive cash flow.
X Woos Advertisers With Discounts and New Formats
X is also changing ad formats and incentives for companies to stay on the platform.
Starting in August, advertisers will lose their verification tick if they haven’t spent at least $1,000 on ads in the 30 days prior or $6,000 in the previous 180 days. A new Explore tab will allow advertisers to occupy a 24-hour placement at the top of a trending list.
The reshaping of the ad business hopes to capitalize on the upcoming Women’s World Cup. Musk unsettled advertisers a few weeks ago with a recent rule limiting the posts users could see. Though the feature was later retracted, the announcement discouraged advertisers through high ad costs.
Musk’s employee changes earlier this year also made advertisers nervous, prompting the billionaire to hire former NBC executive Linda Yaccarino to boost ad revenue. The rebranding of Twitter to X signals the company’s ambitions to expand beyond social media.
Musk hinted the company could integrate cryptocurrency payments as part of a push into financial services.
Price Cuts Present Ripe Opportunities for Crypto Companies
Last year, Joseph Panzarella, a digital marketing director at Yeshiva University’s Katz School of Science and Health, predicted that crypto ads would take a more measured approach after the fall of FTX.
Read here about the events that led to the collapse of FTX.
The Super Bowl spending spree in Q1 2022 saw crypto companies splurge $6.5 million per 30-second TV spot. FTX paid $135 million to have the company’s name shown on the stadium of Miami’s basketball team, while Crypto.com paid $700 million for naming rights to the home of the Los Angeles Lakers.
Now, crypto companies could use Twitter’s discount program and the formation of crypto regulations to advertise legally. Rules in Hong Kong, South Korea, and the UK, give them an air of legitimacy absent from the last spending spree.
Moreover, Meta’s experience with advertising could also push companies to include Threads in their advertising budgets. During the bull market, Facebook and Instagram were the most popular forums for crypto advertising.