Due to difficulties in its ad business, Twitter, a well-known social media network, has made a recent change that will impact companies and businesses on the platform. According to a Wall Street Journal story, starting on August 7, Twitter, now known as X, would deprive firms of their gold checkmark verification if they haven’t spent at least $6,000 or $1,000 on advertising in the previous 180 days.
The gold checkmark verification was introduced as part of the Twitter Blue relaunch in December. It serves as a designation for verified business accounts, signifying authenticity and credibility. Initially, Twitter reportedly charged businesses $1,000 monthly for the checkmark. However, the company waived this fee for its top 500 biggest ad clients and the 10,000 most-followed company, brand, and organization accounts. Notably, some companies, like The New York Times, refused to pay the fee but still retained their checkmarks, while others, like Air France, lost their verification.
It remains uncertain whether the new mandated $1,000 ad spend is in addition to the $1,000 monthly fee for the checkmark that some companies are required to pay. This move comes as ad revenue has been declining for the social media giant.
Elon Musk’s involvement in Twitter has been pivotal. He disclosed that the company had experienced a significant drop in ad revenue, reaching around 50%, leading to negative cash flow. Upon taking over, half of Twitter’s top 100 advertisers reportedly departed from the platform. In December 2022, Twitter’s revenue witnessed a staggering 40% decline compared to the same month in 2021. In an effort to address these challenges, Musk appointed Linda Yaccarino as CEO in May, reflecting the company’s ongoing commitment to reviving its ad slump. Yaccarino, previously the chair of advertising sales and client partnerships at NBCUniversal, brings valuable expertise to Twitter.
The Wall Street Journal claims that the company also provided a limited number of marketers with lower pricing in an effort to boost ad revenue.
When the changes go into effect, brands and companies using Twitter will need to review their advertising strategies and modify them to comply with the new requirements if they want to maintain their coveted gold checkmark verification. The move aims to boost Twitter’s ad business and attract more ad income as Musk and his colleagues try to get the network back on track. How this judgment will impact the ecosystem of the platform’s advertising is yet unknown, as is how brands will adapt to the new regulations.