Twitter: A business lesson in what NOT to do
Elon Musk’s approach to his Twitter buyout is a textbook lesson in what not to do and possibly how to take a company into bankruptcy. Advertisers are fleeing in droves, and Apple and Google may delete the Twitter app because Musk has allowed giving pardons to banned Twitter accounts.
Any good business executive, before taking any action, would ask a lot of questions about the business/brand. This is especially true if you don’t have experience in that industry. Mr. Musk is different. He’s a know-it-all who may have some serious mental health issues. His approach has resulted in a brand on the verge of collapse.
Here are some of the questions any business executive would ask:
1ne: What are the most significant expenses at the company, and how have they been trending?
2wo: What is the worst case scenario regarding advertising revenue, given the downturn in digital advertising?
3hree: What new products do we have in development that have the most significant potential impact on revenue?
4our: How does our headcount compare to the industry?
He would then meet with Twitter’s advertisers and assure them that Twitter is committed to growing and that hate speech and bigotry will not be permitted. Banned accounts will stay banned.
One area that Twitter should invest in is the further development of AI to identify inappropriate Tweets and false information. A system that identifies news stories from the right left, or center would also go a long way.
Twitter needs to demonstrate that it can provide a better ROI for advertisers. Having digital coupons that can be traced back to Twitter would be a significant first step. Don’t tell me it can’t be done because it can.
Twitter COULD charge users $1.00 per month if they assured users that the brand would commit resources to reduce misinformation or inappropriate tweets.
It’s been tough for me, as a marketer, to see Twitter dismantled by someone so ignorant of fundamental business principles. More business leaders need to speak up about Mr. Musks’ irresponsibility and pull advertising until the platform gets back on track.
Facebook and Twitter suffer from CEOs who don’t know how to run a business after the growth phase. Leadership is desperately needed.
Originally published at https://www.newmediaandmarketing.com on November 26, 2022.