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Musk’s SpaceX buys ads from Musk’s Twitter amid bankruptcy fears

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Amid Twitter’s ongoing struggles to drum up profit as advertisers bail, SpaceX has ordered one of the social media platform’s larger advertising packages.

While a company buying advertising from another company wouldn’t typically be a big deal, it’s worth noting that Elon Musk is CEO for both SpaceX and Twitter. Moreover, Twitter has faced increasing pressure to make money after Musk’s acquisition saddled the company with significant debt. Musk previously said Twitter saw a “massive drop in revenue” and that the company faced bankruptcy, and under Musk, Twitter laid off a significant portion of its workforce to save money.

CNBC reported on the SpaceX ad buy, citing internal records viewed by the publication as well as information shared by a Twitter employee who asked not to be identified. SpaceX reportedly purchased what’s called a Twitter ‘takeover’ to promote Starlink, the company’s satellite internet service. The campaign will target Australia and Spain and was reportedly purchased last week.

According to CNBC, when a company buys a takeover, it typically costs $250,000 USD (about $332,036 CAD) per day and will put the brand at the top of the main Twitter timeline for a full day. Users reportedly will see Starlink brand messaging for the first three times they open Twitter on the day (or days) of the takeover campaign. SpaceX’s campaign is slated to run in the coming days.

Moreover, CNBC notes that SpaceX doesn’t typically purchase large advertising campaigns from Twitter.

This all makes for a relatively suspicious transaction, given Musk’s very public discussions of Twitter’s financial problems and dropping ad revenue. It also comes after Musk headed the failed rollout of a revamped Twitter Blue subscription service. Musk pushed Twitter to launch a new, more expensive version of Blue that provided paying subscribers with a blue verified checkmark, which was previously reserved for authenticating high-profile accounts. Within hours of the subscription going live, a variety of fake accounts with paid verification badges flooded Twitter with posts, some of which had significant impacts on companies — namely, a fake tweet about insulin that caused Eli Lilly to lose billions after the company’s stock took a dive.

The chaos prompted Twitter to pause the new Blue subscription within days of it going live, and Musk seems to be reconsidering the idea, saying in a tweet that Twitter would allow organizations to identify which other accounts are actually associated with them.

For the latest on the turmoil at Twitter, check out all of MobileSyrup’s coverage here.

Source: CNBC





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