About us

About us

Based out of Auckland, New Zealand, we bring an institutional trading experience to the retail market.
Mark O'Donnell
 · 
Research Analyst
December 6, 2022
 · 

Twitter-Apple feud all in Elon’s head

  • Near the end of November, Musk tweeted that Apple has "mostly stopped advertising on Twitter" with a question whether the company hates "free speech in America."
  • Following his meeting with Cook, Musk said his counterpart was "clear" that Apple never considered removing his company from the App Store
  • In an effort to retain advertisers, Twitter has ramped up its incentives offering to the point where it will match an at least $500,000 spending increase commitment with a "100% value add", up to a $1 million cap

Twitter owner and Chief Executive Officer Elon Musk told a Twitter Spaces conversation on Dec. 3 that Apple has fully resumed advertising on the social media platform. 

Musk noted that the iPhone and Mac manufacturer is Twitter's largest advertiser. Its return to full advertising on the platform follows a meeting between Musk and Apple CEO Tim Cook, wherein they "resolved the misunderstanding," which could have escalated tensions between the companies to the point where Apple would remove Twitter from its App Store. 

Near the end of November, Musk tweeted that Apple has "mostly stopped advertising on Twitter" with a question whether the company hates "free speech in America." Musk also claimed that Apple threatened to remove Twitter from its App Store without an explanation, following it with a Twitter poll asking if Apple should "publish all censorship actions it has taken that affect its customers." 

Following his meeting with Cook, Musk said his counterpart was "clear" that Apple never considered removing his company from the App Store. 

Twitter's advertising problems beyond Apple 

Even before the tensions with Apple, Twitter has been faced with other companies pulling out or reducing ad spending on the platform, particularly following Musk's takeover of the social media company in late October. 

Musk's plans to revise Twitter's system of handing out blue check marks for verified account through an $8 monthly payment did not sit well with many companies after initial rollout resulted in a number of impersonation incidents that affected brands on the site. There were also worries regarding the new owner's approach to content moderation and account suspensions, among other issues. 

Musk has since paused the verification program, with plans to revive it once concerns with imposters have been resolved. The next phase of the verification system is expected to include color-coded check marks that will distinguish the verified accounts for companies and government officials from those for individuals. 

Roughly 90% of Twitter's revenue is generated through advertisements. With big brands including General Motors, General Mills, Mondelez, Volkswagen AG's Audi and Pfizer Inc. deciding to pause their ad spending in recent weeks, it is no wonder Twitter is scrambling to avoid further retreat from happening. 

In an effort to retain advertisers, Twitter has ramped up its incentives offering to the point where it will match an at least $500,000 spending increase commitment with a "100% value add", up to a $1 million cap, various media reported, citing an email from the company. It is being pegged as the "biggest advertiser incentive ever" on the social media platform and is valid for advertising that runs before the end of 2022, according to people familiar with the matter. 

To alleviate some concerns, Musk had also been reassuring advertisers both publicly and privately that Twitter will remain a safe space for brands. He also encouraged companies to publicly air their concerns about the site by tweeting at him. 

Trade with an award-winning broker
Start trading in less than 5 minutes
join now