Monday, June 12, 2023

Twitter Decides To Share Revenue With Creators For Ads Seen In Tweet Replies

It appears Elon Musk’s Twitter (aka X) is all set to make a massive push in terms of monetization for creators and there are some serious considerations worth a mention.

This has to do with the fact that the tech billionaire is all set to share revenue with its own creators linked to ads seen across its tweet responses. furthermore, this is going to add a new kind of pathway so individuals can produce more funds from their respective presence across the platform. But the real details in this situation require a little bit of thought.

For starters, Elon Musk claims only his respective Blue members would be able to reap the benefits of this program. And that is aligned with the app’s strategy being used to ensure verification. The latter is a topic that a lot of people are hesitant about.

Most importantly, you will only see ads being sent out in response to the users who achieve the verification status and that would make up their funding so it can be shared with other content creators on the app.

Now a lot of controversies arise in this regard. Last time we heard, the app reduced the exposure of ads for those with the Blue subscription. But that will certainly not change the way this offering arises.

Remember, a huge concern with this getting implemented is Elon Musk’s goal of reducing ads for those paying and that may lead to a major effect on the app.

Today, on average, the revenue allocated for each user of the app in America is $12 each quarter. And you’ll be interested to learn how a major chunk of such an income would be exposure for ads.

So when you come to think of it, reducing ad exposure by 50% for Blue members means they’ll be getting $6 each quarter from simple ads.

Twitter ended up watering this news further, thanks to its classic announcement on the matter. Remember, in April, we saw the tech giant try to bring in more benefits for Blue members along the way. This resulted in a decrease in the app’s overall revenue but at the same time, it does align so well with its current figures for revenue share.

The reduction in ads for Blue subscribers certainly has nothing to do with such an update as it does not affect the count for ads put in the reply section. Clearly, there was a lot of confusion at first and the company had to do quite a bit of extra work to separate it all out.

Now, the question is what type of funds can creators of the platform expect, thanks to this new project. And the answer is disappointing because that’s how less it is.

As far as recent forecasts are concerned, the combination of fewer ads and monthly expenses for payments means we’re seeing the app bring in nearly $30 per user, each quarter.

Today, Twitter Blue has a staggering 700k subscribers, and that in turn would result in 21 million of revenue generated for every quarter on the app. Moreover, most of the ads can be seen across the newsfeed and not across the section for replies.

With that being said, let’s not forget how Blue members are more active on Twitter than the average user, and that means seeing a rise in value. So when you break it all down, you can witness where this massive block payment is arising from as it’s a huge chunk of the entire ordeal taken up by Blue members.


Read next: Twitter's Mobile Revenue Takes a Hit in May
by Dr. Hura Anwar via Digital Information World

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