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According To Ad Specialists, Musk's Twitter Rate Limits Could Hurt The New CEO

According To Ad Specialists, Musk's Twitter Rate Limits Could Hurt The New CEO
According to marketing industry experts, Elon Musk's decision to temporarily limit the number of messages that Twitter users may view on the social media platform could jeopardise the company's efforts to draw in advertisers under its new CEO Linda Yaccarino.
In an effort to prevent "extreme levels" of data scraping and system manipulation, Musk revealed on Saturday that Twitter would restrict the number of tweets that different accounts can read each day.
In response, users provided screenshots demonstrating that after reaching the limit, they were unable to view any tweets, including tweets on the pages of corporate advertisers.
Ad industry professionals claimed that Yaccarino, the former head of advertising for NBCUniversal who began serving as Twitter's CEO last month, now faces a challenge as a result of the decision.
According to a story published by the Financial Times this week, Yaccarino has made an effort to mend fences with advertisers who have abandoned the site since Musk purchased it last year.
According to Mike Proulx, research director at Forrester, the restrictions are "remarkably bad" for users and advertisers who are already uneasy about the "chaos" Musk has introduced to the site.
"The advertiser trust deficit that Linda Yaccarino needs to reverse just got even bigger. And it cannot be reversed based on her industry credibility alone," he said.
Yaccarino is Musk's "last best hope" to save advertising income and the company's worth, according to Lou Paskalis, the founder of the advertising agency AJL Advisory and a former marketing executive at Bank of America.
"This move signals to the marketplace that he's not capable of empowering her to save him from himself," he said.
Unverified accounts were initially restricted to 300 new unverified accounts and 600 posts per day under the new quota. According to Musk, verified accounts could view 6,000 posts each day on the website.
A few hours later, he claimed that the limit had been increased to 10,000 posts per day for verified users, 1,000 posts per day for unverified users, and 500 posts per day for brand-new unverified users.
There were no comments on the issue from Twitter.
According to Jasmine Enberg, chief analyst at Insider Intelligence, restricting the amount of content users can view might be "catastrophic" for the platform's advertising revenue.
"This certainly isn't going to make it any easier to convince advertisers to return. It's a hard sell already to bring advertisers back," she said.
The restriction was put in place soon after Twitter started forcing users to sign into an account to access tweets, a move Musk described as a "temporary emergency measure" to stop data scraping.
Musk had previously indicated his displeasure with artificial intelligence companies using Twitter's data to train their huge language models, such as OpenAI, the owner of ChatGPT.
Platforms like Reddit and significant news media outlets have expressed their displeasure about AI firms utilising their data to train AI models in exchange for payments.
According to Kai-Cheng Yang, a researcher at Indiana University in Bloomington, the restrictions appeared to be successful in preventing third parties, such as search engines, from scraping Twitter data in the same way they previously did.
"It might still be possible, but the methods would be much more sophisticated and much less efficient," he said.

Christopher J. Mitchell

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