As more brands pull off Twitter, SpaceX gets a big Twitter ad package

Elon Musk decided that one way to build trust in Twitter as an advertising platform was to become an advertiser himself. Yesterday, CNBC reported that SpaceX has bought one of Twitter’s premium ad packages (usually when SpaceX rarely invests in Twitter advertising) as Musk’s other company, Starlink, plans to start advertising its satellite Internet to customers in Spain and Australia. According to internal documents reviewed by CNBC, SpaceX has spent $160,000 on the Twitter ad campaign so far and may invest up to $250,000 in total.

According to Musk, the fact that SpaceX received this advertising package is nothing special. Both SpaceX and Twitter’s CEO took issue with CNBC’s description of the ad investment as “massive.”

“SpaceX Starlink purchased a small, not-too-large advertising package to test the effectiveness of Twitter advertising in Australia and Spain.” Musk tweeted. “Did the same for FB/Insta/Google.”

While Musk has recently been dealing with Twitter’s advertising woes, it’s true that Musk has been motivated to grow Starlink’s customer base this year. In February, Forbes reported that if 250,000 people actually use Starlink, it could make $25 million a month, which includes Musk. Forbes reports that this could bring in $300 million annually, allowing SpaceX to quickly recoup the costs of launching the service, as long as Musk continues to find new customers.

“There’s clearly a real business here, and additional customers will continue to amortize the company’s costs faster over time,” Forbes said, crediting Musk with launching premium internet services that could pay off SpaceX’s debt even faster. These premium options range from SpaceX offering $500 per month higher bandwidth Internet services for rural businesses to $5,000 per month Internet services for yachts and oil rigs.

Despite SpaceX’s interest in reaching more customers, Twitter is rarely considered a source of new customers by SpaceX. Current and former SpaceX employees told CNBC that “SpaceX hasn’t typically received large advertising packages from Twitter” — until now.

Musk may have learned from his position on the social platform exactly how Twitter can help his other businesses. Or, perhaps this big ad buy could be Musk’s way of showing that Twitter is still a viable platform for advertisers and once again putting his money where his mouth is.

SpaceX did not immediately respond to Ars’ request for comment. Twitter’s communications office has reportedly shut down.

How big was SpaceX’s Twitter ad package?

Musk disputed reports commenting on the large size of the advertising package SpaceX purchased. According to CNBC, the ad package is part of a campaign known as a Twitter “takeover.”

There are two types of “capture” packages that advertisers can purchase from Twitter. One is trend capture, where brands can place ads next to trending topics. Another is a timeline capture where brands are sure their ads will be at the top of their timelines. Timeline capture ensures that a brand’s ad is the first ad users see when they log in.

CNBC reported that SpaceX has purchased Timeline Twitter describes in marketing materials is “the equivalent of a billboard or billboard where millions of people will see your brand’s ad.”

Musk said the roughly $160,000 SpaceX spent was “small” on its books, but given how Twitter describes its ad packages, the timeline capture appears to be one of the biggest ad packages SpaceX could receive. Active It is one of Twitter’s business pagesTwitter describes the takeover as giving advertisers access to “high-end, massive placements.”

As CNBC points out, whether SpaceX’s ad investment is considered small or large, it’s not large enough to compensate for all the advertisers pulled from Twitter. For someone like Musk who has to look at the big picture, it probably seems pretty small.

Musk insists that SpaceX has invested in advertising for Starlink on all the major social platforms, and perhaps this is the first time SpaceX is doing such a big deal with Twitter, and it has less to do with Musk owning the platform and more to do with a larger proposition. there is now to manage Starlink’s growth by any means necessary.

Clearly adjusting to his new Twitter role, Musk continues to show that he has little understanding of Twitter’s marketing value, despite SpaceX becoming one of Twitter’s biggest advertisers. Many social media executives scoffed when Musk tweeted and then deleted the tweet saying, “Twitter drives a lot of clicks to other websites/apps.” Biggest click driver on the Internet ever.” Before Musk’s tweet was deleted, Twitter users added context, checked Musk’s facts, and clarified that Twitter drives the fewest clicks of any other social network.

One well-known ex-employee, Claire Diaz-Ortiz – who worked at Twitter from 2009-2014 – is perhaps best known for. Joining the Pope on Twitter– Joined those who called Musk “lies”.

“This is 100 percent false and Twitter knows it” Diaz-Ortiz wrote on his Twitter account, clarifying that Twitter doesn’t sell ads on clicks because it can’t compete with platforms like Facebook as a traffic driver. “Twitter has other key strengths. (And marketing is more than clicks),” he educated the new owner of Twitter.

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