Twitter Is Courting Advertisers Despite Musk's Uncertain Future

Twitter Inc faced a skeptical audience on Wednesday in New York City as it demonstrated its advertising potential, three ad agency executives told Reuters, as the social media company's future under billionaire Elon Musk remains unknown.

Tesla CEO Elon Musk (NASDAQ:TSLA), who is acquiring Twitter (NYSE:TWTR) for $44 billion, has tweeted that the platform should be ad-free to give it more control over its content moderation standards.

Twitter has assured employees in internal staff meetings and public filings that its advertising business and other activities will continue as usual until the transaction is completed, but the firm could not speculate on any modifications Musk may make.

"He's like the ghost of Christmas future looming over this whole thing," Mark DiMassimo, founder of advertising agency DiMassimo Goldstein, said of Twitter's Wednesday pitch to advertisers. "Whatever (Twitter) says, all that matters is how this will play out in the future."

In 2021, the social media firm expects to earn $5 billion in income, the majority of which will come from digital advertising on its website and app.

The majority of advertisers have not pulled their advertising dollars away from Twitter, but are keenly monitoring Musk's potential changes to the network and its operations, the ad executives said.

"I'd like to see (Twitter) address and communicate with it, because there's a lot of curiosity," said Alex Stone, Horizon Media's senior vice president of advanced video and agency relationships.

Before Twitter's presentation began, advertising agencies and businesses congregated in a vast event hall in New York City. According to one ad buyer, guests speculated on whether Twitter will make light of the take-private arrangement with Musk or confront it directly.

The purchaser did not have to wait long for a response.

At the start of the presentation, JP Maheu, Twitter's VP of global client solutions, said, "It's been a quiet month here at Twitter."

The company also announced other content collaborations in conjunction with the presentation.

Twitter announced the expansion of its partnership with Conde Nast and Essence, which will generate video and audio programming for Twitter. E! News will debut a new live-streamed show on Twitter to debate popular television shows including "The Real Housewives" and "Stranger Things."

Advertisers will be able to purchase ad spaces that will appear alongside media businesses' films. The social networking platform announced that it would be the first social partner to test a connection with iSpot, the video viewing measurement company used by NBCUniversal.

Additionally, Twitter announced that Fox Sports will stream live pregame presentations for every match of the FIFA men's World Cup in Qatar this year and the women's World Cup in 2023.

Twitter's chief customer officer, Sarah Personette, concluded the presentation by expressing gratitude to the company's advertisers.

"Your participation improves us on a daily basis. We are extremely appreciative of your support," she stated.

At least one marketer expressed a want for more information following the presentation.

According to Jasmine Wang, media director at Altice USA, her company reduced its advertising expenditure on Twitter due to concerns over Musk's possible impact on the platform.

Wang stated that she anticipated Twitter's presentation to be longer and more comprehensive, with the hope that it would address potential changes under Musk.