Twitter CEO Linda Yaccarino Defends Platforms Future, Denies Advertiser Pressure, and Highlights X Money Launch
The social media giant Twitter has been making headlines lately, with CEO Linda Yaccarino sharing her vision for the platform's future at the Cannes Lion Festival of Creativity. Yaccarino, who took over as CEO on June 5, 2023, is optimistic about the platform's "historic evolution" and the return of 96% of its advertisers, along with a "tidal wave of new advertisers."
However, a recent report by the Wall Street Journal claimed that Twitter has threatened lawsuits against ad buyers such as Verizon and Ralph Lauren if they don't increase their spending. Yaccarino denied any involvement in these reports, stating that there were no named sources or facts in the article and that the story was based on the House Judiciary Committee's findings and evidence.
Since Elon Musk completed his $44 billion acquisition of Twitter in October 2022, the platform has faced a turbulent time. Mass layoffs, concerns about unmoderated hate speech, and a 50% drop in ad revenue have been reported since Musk's purchase. Yaccarino has been tasked with turning things around and has been dealing with controversial posts from Musk, his support of Donald Trump, and the recent breakup between the two.
Despite these challenges, Yaccarino is confident in Twitter's future. EMarketer projects that its global ad revenue will rise 16.5% this year to $2.26 billion as businesses return to the platform while Musk's influence rises. If reached, it would mark the first increase under his ownership.
Twitter has been pushing subscriptions to diversify revenue and drive Musk's "everything app" vision. The platform has stopped sharing its active daily user count and total revenue, though Yaccarino said it has nearly 600 million monthly active users. Meanwhile, Meta's competitor, Threads, now has over 350 million monthly active users, while Snapchat has surpassed 900 million monthly active users.
Yaccarino also confirmed that Twitter will launch X Money this year with peer-to-peer payments, with investments and trading capabilities to follow. She predicts that a "big lure for creators on the platform will be [the ability] to buy merchandise and tip a creator," which will lead to a "whole commerce ecosystem" on the platform.
However, Twitter's fate still hangs in the balance with its latest deadline to divest its US assets just days away on June 19. Yaccarino believes that any platform being banned is not good for the ecosystem and that Twitter has not dismantled content moderation but replaced it with Community Notes, which is now adopted by Facebook, YouTube, and TikTok.
According to a study conducted by researchers at the University of Southern California, between January 2022 and June 2023, hate speech on Twitter's English language posts increased 50%, transphobic slurs rose 260%, homophobic posts grew 30%, and racist tweets jumped 42%. Despite these concerns, Yaccarino remains optimistic about Twitter's future and its ability to thrive as a platform for creators and businesses alike.
