In a Tuesday presentation by Elon Musk and Morgan Stanley for Twitter‘s private investors, Musk emphasized the importance of Twitter as a source of truth, stressing the need for timely and accurate information even if it is unpleasant.
Musk’s Vision For Twitter: The Twitter owner said the platform enables the public to control the narrative, making it a platform for citizen journalism and public communication unlike anything seen before.
Musk said he sees Twitter’s commitment to free speech and a level playing field as essential for functioning democracies, mentioning the First Amendment.
He said that Twitter should be a place for authentic, informative and entertaining content, even if it is controversial or uncomfortable.
While advertisers have the ability to choose what content their ads are near, Musk said he believes that Twitter’s content needs to remain truthful and informative.
Musk also discussed the power of Twitter in providing real-time news and information. He contrasted the traditional media’s delayed reporting with Twitter’s immediate updates, pointing out that Twitter can often be the first place major news is reported.
Yet Musk also noted the risk of misinformation spreading on Twitter, and that people should be skeptical of news stories about Twitter.
Musk On Twitter Ads: On revenues, Musk said that Twitter has the potential to increase its revenue by serving ads that are relevant and useful to its users, noting that it now makes 5 to 6 cents per hour of human attention despite having 120 to 130 million hours of human attention per day.
The billionaire said he sees revenues increasing to at least 15 to 20 cents per hour, per user, considering Twitter’s user base of “smart and influential people” who he said are valuable to advertisers.
On the topic of advertising, Musk spoke about Twitter’s value, with 147 billion impressions during the World Cup, 50% year over year growth in NFL video views and a 39% increase in Super Bowl mentions.
Twitter’s brand safety and its focus on relevant advertising were also highlighted, with Musk stating the company is looking to introduce performance-based advertising immediately after the acquisition closes. The goal is to become cash flow positive next quarter, which will depend on the advertiser response, he said.
Musk acknowledged that Twitter was in a dire situation when he joined, with a negative $3-billion revenue rate and $1 billion in the bank.
The company has since cut down its expenses significantly, reducing its cloud expenditures and increasing the speed of its product evolution.
The focus is now on growing into something “spectacular,” Musk said, reiterating that Twitter is a platform the world needs.
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