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Major Advertising Agency Omnicom Advises Clients To Halt Twitter Advertising Spending: Reports

Major Advertising Agency Omnicom Advises Clients To Halt Twitter Advertising Spending: Reports
The advertising and marketing conglomerate Omnicom Group Inc (OMC.N) has advised clients to temporarily stop spending money on Twitter, according to reports quoting information from an internal memo.
Over 5,000 clients, including Apple and McDonald's Corporation, are served by Omnicom globally. The memo made no specific mention of any clients, so it's unclear if any have stopped investing in Twitter advertising.
The move, which was first reported by technology news website The Verge, highlights a growing lack of confidence among agencies and brands in the future of the microblogging platform following Elon Musk's $44 billion acquisition.
The CEO of Tesla has attributed a "massive" revenue decline to civil rights organizations pressuring Twitter advertisers to stop using the platform until Musk made clear how he would police false information and hate speech on it.
“Twitter’s ability to maintain their previous level of brand safety measures and effectiveness seem impeded in the immediate term,” according to the memo.
“Whilst OMG believes this is unlikely to result in a significantly higher risk environment for advertisers, the risk of being associated with unsafe content could rise and as such should be considered when deciding on use of the platform.”
More than 90% of Twitter's revenue in the second quarter came from advertising sales.
General Motors Co, a U.S. automaker, announced last month that it had temporarily stopped running paid advertisements on Twitter.
On the other hand, as fake accounts proliferated and new owner Elon Musk reinstated the "official" badge for some users of the social media platform, Twitter Inc. paused its recently announced $8 blue check subscription service on Friday.
Before, only verified accounts of public figures like journalists, politicians, and well-known people could display the coveted blue check mark. But earlier this week, Twitter launched a subscription option that is available to anyone willing to pay in order to increase revenue as Musk battles to keep advertisers.
The reversal is a result of Twitter's chaotic past two weeks following Musk's $44 billion acquisition. Musk has fired almost half of Twitter's staff, ousted the company's board of directors and top executives, and hinted at Twitter's potential bankruptcy.
On Thursday, the US Federal Trade Commission stated that it was closely monitoring Twitter with "deep concern."
On Friday, a number of users claimed that the brand-new subscription option for the blue verification check mark was no longer available, and a source told Reuters that the service has been discontinued.
Since the new roll-out, fake accounts posing as well-known companies have appeared with the blue check, including Musk's Tesla and SpaceX, as well as Roblox, Nestle, and Lockheed Martin.
"To combat impersonation, we've added an 'Official' label to some accounts," Twitter's support account - which has the "official" tag - tweeted on Friday.
The brand was initially unveiled on Wednesday, but Musk "killed" it a few hours later.
After a fake account tweeted that insulin would be free, the pharmaceutical company Eli Lilly and Co. apologized amid political backlash and inquiries into the high cost of the drug.
"We apologize to those who have been served a misleading message from a fake Lilly account," the company said, reiterating the name of its Twitter handle.
On the platform, a verified account with the same profile picture as the company's official account was also spreading a number of false tweets about Tesla.
"Twitter has over the past several years worked to try to improve that (misinformation). And it seems like Elon Musk has unraveled it within a matter of weeks," said A.J. Bauer, a professor at the University of Alabama.
Musk had stated that accounts that use impersonation on Twitter without explicitly designating it as "parody" accounts would be immediately and permanently suspended. Several fake brand accounts have been suspended, including those of Nintendo and BP.
Three people who saw the message told Reuters that Musk warned Twitter on Thursday that if it didn't increase subscription revenue to balance out declining advertising income, it wouldn't be able to "survive the upcoming economic downturn."
Since Musk took over, a lot of businesses, including General Motors and United Airlines, have stopped or reduced their platform advertising. The billionaire responded by stating on Wednesday that he wanted to use Twitter as a force for truth and get rid of fake accounts.

Christopher J. Mitchell

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