Elon Musk, the eccentric billionaire and CEO of SpaceX and Tesla, is making headlines once again as he prepares to attend the upcoming MMA Global conference in Miami. This digital marketing trade association conference will provide Musk with an opportunity to address some of the top marketing executives in America, as he seeks to mollify advertisers in the wake of recent controversies.
Semafor, an anonymous online activist group, recently obtained leaked emails among some of America’s top marketing executives expressing concern over Musk’s attitudes on race. In particular, McDonald’s Chief Marketing and Customer Experience Officer, Tariq Hassan, described Musk’s acquisition of Twitter as “a situation post-acquisition that objectively can only be characterized as ranging from chaos to moments of irresponsibility.” Hassan went on to state that “for many communities, his willingness to leverage success and personal financial resources to further an agenda under the guise of freedom of speech is perpetuating racism resulting [in] direct threats to their communities and a potential for brand safety compromise we should all be concerned about.”
Hassan was not alone in expressing these concerns, as Colgate-Palmolive’s Vice President and General Manager of Consumer Experience and Growth, along with several other high-level marketing executives, also weighed in on the matter. Their comments highlight the ongoing controversy surrounding Musk’s outspoken conservative political views and occasional direct attacks on his customers, which have severely impacted Twitter’s ad business. In fact, Musk has acknowledged that many top advertisers have paused advertising since he took over, resulting in a steep decline in revenue.
Despite the challenges he faces, Musk has been exploring various options to improve Twitter’s profitability, including advertising, tiered subscriptions, paid content, and other conventional methods. However, he has also been focused on building a subscription news business to rival Substack, which he reportedly values at a staggering $585 million. While Musk’s interest in Substack may indicate a desire to compete or force the newsletter company to sell to him, its best outcome would represent only a small fraction of the $5 billion in ad revenue Twitter generated in 2021.
Musk’s recent moves on Twitter have only served to further complicate matters. He recently removed The New York Times’ verification badge and applied “government-funded” warning labels to the accounts of NPR and the BBC, leading to backlash from the outlets. Meanwhile, Musk nonchalantly announced over the weekend that Twitter will no longer limit the reach of state-controlled outlets such as Russia’s RT and China’s Xinhua News, citing the idea that “all news is to some degree propaganda,” and insisting that people should be allowed to decide for themselves.
This decision, along with Musk’s implementation of policies that severely limited the reach of Substack articles, has only added to the chaos on the platform. By blurring the lines between authoritative sources of news and outright propaganda, Musk is making it increasingly difficult for news organizations to navigate the already tumultuous social media landscape.
Despite the turmoil and controversy, many news organizations are continuing to advertise on Twitter. Musk paid $44 billion for the platform just last year, but has already conceded that more than half the value has been eviscerated under his leadership. He should be concerned about the destruction of Twitter, not just because of the role it plays in worldwide communications, but also because it carries serious financial implications.
Instead of focusing on reestablishing trust with the public, Musk continues to wreak havoc, carrying out childish acts such as painting over the “w” on the logo adorning Twitter’s San Francisco headquarters to make it read “Titter.” Under Musk’s leadership, Twitter has morphed into something else, twisted by the billionaire’s ego and whims into a warped version of its former self. He has implemented haphazard policies, often driven by childish inhibitions,and has been dismissive of the concerns of top advertisers and marketing executives, which has led to a decline in revenue and raised questions about the long-term viability of the platform.
It remains to be seen whether Musk’s upcoming appearance at the MMA Global conference will do anything to allay the concerns of advertisers and marketers. Some have suggested that Musk may use the opportunity to announce new initiatives aimed at improving Twitter’s profitability and addressing the concerns raised by top marketing executives. Others, however, remain skeptical, pointing to Musk’s history of making grandiose statements and failing to deliver on his promises.
One thing is clear: Musk’s leadership of Twitter has been controversial and chaotic, with serious implications for both the platform and the wider world of digital marketing. As the MMA Global conference approaches, many will be watching closely to see what Musk has to say, and whether he can begin to repair the damage that has been done.
