Twitter will pay creators for ads in replies but there's a catch

Twitter will pay creators for ads in replies but there's a catch

Twitter is launching a new initiative to reward verified content creators for ads served in their replies, according to a tweet by Elon Musk, the owner of the social media platform. The program will start "in a few weeks" and the first block of payments will total $5 million.

However, there is a catch: only verified users will be eligible for payment and only ads that are served to other verified users will count. This means that the majority of Twitter users will not benefit from this scheme, and neither will the advertisers who want to reach a wider audience.

The move comes as Twitter struggles to revive its advertising revenue, which has declined since Musk took over the platform last October. Musk has been trying to transform Twitter into X, an "everything app" that offers various functions such as mobile payments, food delivery and more.

The new advertising initiative was announced days after Linda Yaccarino, Twitter's new CEO with an extensive advertising background, took over from Musk. Yaccarino was previously the head of advertising at NBCUniversal and is expected to improve the platform's relationship with advertisers and help it achieve its goal of becoming a super app.

However, some experts are skeptical about the effectiveness of the new model. They argue that it will limit the reach and relevance of the ads, as well as create a divide between verified and non-verified users. They also question whether Twitter can compete with other platforms such as Meta and WeChat, which have already established themselves as super apps in their respective markets.

Twitter has not revealed more details about how the program will work or how much creators will earn per ad. It remains to be seen whether this initiative will boost Twitter's advertising revenue and user engagement, or whether it will backfire and alienate both creators and advertisers.

Twitter's super app ambitions

Twitter's plan to become a super app is not new. Musk has been vocal about his vision of creating X, an "everything app" that would offer various functions such as messaging, payments, food delivery and more. He has said that he wants to emulate the success of WeChat, which dominates the Chinese market with its all-encompassing services.

However, turning Twitter into a super app is easier said than done. Twitter faces several challenges and uncertainties in its quest to become X, such as:

- Regulatory hurdles. Twitter operates in many countries with different laws and regulations that may limit its ability to offer certain services or features. For example, Twitter may face difficulties in launching a payments service in India, where it has been involved in a legal dispute with the government over its compliance with new IT rules².
- User adoption. Twitter has about 330 million monthly active users worldwide, which is far less than WeChat's 1.26 billion users¹. Moreover, Twitter's user base is mainly concentrated in the US and other Western markets, where super apps are not as popular or familiar as in Asia. Twitter will have to convince its existing and potential users that it can provide value-added services that they need and want.
- Competition. Twitter is not the only platform that is eyeing the super app opportunity. Other tech giants such as Meta (formerly Facebook), Google and Amazon have also been expanding their offerings and integrating various services into their platforms. For example, Meta has launched Meta Pay, a digital wallet that allows users to send and receive money through its apps.Google has Google Pay, which enables users to pay for goods and services online and offline. Amazon has Amazon Pay, which lets users shop and pay on its e-commerce platform and other websites. These platforms have larger user bases and more resources than Twitter, which could give them an edge in the super app race.
- Innovation. Twitter will have to constantly innovate and improve its features and services to keep up with the changing needs and preferences of its users and advertisers. It will also have to deal with the technical challenges of integrating multiple functions into one app, such as ensuring security, privacy, performance and user experience. Twitter will have to invest heavily in research and development, as well as acquire or partner with other companies that can provide complementary services or technologies.

Twitter's super app ambitions are ambitious and risky, but they could also be rewarding if executed well. Twitter could potentially increase its revenue streams, user engagement and market share by becoming a one-stop shop for its users' needs. However, it will have to overcome many obstacles and uncertainties along the way, and it may not be able to achieve its goal of becoming X anytime soon.

What could Twitter's super app look like?

While Twitter has not revealed much about its super app features, some clues can be found in Musk's tweets and statements, as well as Twitter's recent partnerships and acquisitions. Here are some possible features that Twitter's super app could offer:

- Messaging. A super app should have a messaging platform to chat, share and interact with other users. This feature helps build a community around the app⁵. Twitter already has a direct messaging function, but it could improve it by adding more options such as voice and video calls, stickers and emojis, group chats and channels.
- Payments. A super app should also have a payments component that allows users to send and receive money, pay for goods and services, and access financial products. This feature helps generate revenue for the app and its users⁵. Twitter has recently partnered with TradeStation Crypto, a stock and crypto trading firm, to enable users to buy and sell cryptocurrencies within the app¹. Twitter could also leverage its existing features such as Tip Jar and Super Follows to allow users to support their favorite creators and access exclusive content.
- Food delivery. A super app could also offer food delivery services that allow users to order food from local restaurants and have it delivered to their doorstep. This feature helps increase user convenience and loyalty. Twitter could partner with existing food delivery platforms such as Uber Eats or DoorDash, or create its own service using its location data and user preferences.
- Gaming. A super app could also include gaming services that allow users to play games, watch live streams, join tournaments and earn rewards. This feature helps enhance user engagement and entertainment. Twitter could leverage its acquisition of Twitch, a live streaming platform for gamers, to integrate gaming into its app. Twitter could also allow third-party developers to create mini-games within the app using its mini-program feature.
- Artificial intelligence. A super app could also use artificial intelligence to provide personalized recommendations, suggestions, insights and assistance to its users. This feature helps improve user experience and satisfaction. Twitter has recently incorporated an artificial intelligence company called X.AI, which may be part of its super app plans. Twitter could use X.AI's technology to create a virtual assistant that can help users with various tasks such as scheduling appointments, booking travel, ordering food and more.

These are just some of the possible features that Twitter's super app could offer. However, these features are not guaranteed or confirmed by Twitter or Musk. They are based on speculation and analysis of the available information. Twitter may have different or additional features in mind for its super app, or it may change or abandon its plans altogether.

Twitter's super app challenges and opportunities

Twitter's super app ambitions are ambitious and risky, but they could also be rewarding if executed well. Twitter could potentially increase its revenue streams, user engagement and market share by becoming a one-stop shop for its users' needs. However, it will have to overcome many challenges and uncertainties along the way, such as:

- Regulatory hurdles. Twitter operates in many countries with different laws and regulations that may limit its ability to offer certain services or features. For example, Twitter may face difficulties in launching a payments service in India, where it has been involved in a legal dispute with the government over its compliance with new IT rules.
- User adoption. Twitter has about 330 million monthly active users worldwide, which is far less than WeChat's 1.26 billion users. Moreover, Twitter's user base is mainly concentrated in the US and other Western markets, where super apps are not as popular or familiar as in Asia. Twitter will have to convince its existing and potential users that it can provide value-added services that they need and want.
- Competition. Twitter is not the only platform that is eyeing the super app opportunity. Other tech giants such as Meta (formerly Facebook), Google and Amazon have also been expanding their offerings and integrating various services into their platforms. For example, Meta has launched Meta Pay, a digital wallet that allows users to send and receive money through its apps. Google has Google Pay, which enables users to pay for goods and services online and offline. Amazon has Amazon Pay, which lets users shop and pay on its e-commerce platform and other websites. These platforms have larger user bases and more resources than Twitter, which could give them an edge in the super app race.
- Innovation. Twitter will have to constantly innovate and improve its features and services to keep up with the changing needs and preferences of its users and advertisers. It will also have to deal with the technical challenges of integrating multiple functions into one app, such as ensuring security, privacy, performance and user experience. Twitter will have to invest heavily in research and development, as well as acquire or partner with other companies that can provide complementary services or technologies.

Twitter's super app ambitions are ambitious and risky, but they could also be rewarding if executed well. Twitter could potentially increase its revenue streams, user engagement and market share by becoming a one-stop shop for its users' needs. However, it will have to overcome many challenges and uncertainties along the way, and it may not be able to achieve its goal of becoming X anytime soon.

Conclusion

Twitter is planning to become a super app that offers various functions such as messaging, payments, food delivery, gaming and artificial intelligence. The platform's owner Elon Musk has said that he wants to create X, an "everything app" that would emulate the success of WeChat, the dominant super app in China.

However, turning Twitter into a super app is not an easy task. Twitter faces several challenges such as regulatory hurdles, user adoption, competition and innovation. Twitter will have to convince its users and advertisers that it can provide value-added services that they need and want. Twitter will also have to constantly innovate and improve its features and services to keep up with the changing market.

Twitter's super app ambitions are ambitious and risky, but they could also be rewarding if executed well. Twitter could potentially increase its revenue streams, user engagement and market share by becoming a one-stop shop for its users' needs. However, it will have to overcome many challenges and uncertainties along the way, and it may not be able to achieve its goal of becoming X anytime soon.

Source: 

(2) Twitter Will Pay Some Users For Ads. Here’s How It Will Work - Forbes. https://www.forbes.com/sites/mollybohannon/2023/06/10/twitter-will-pay-some-users-for-ads-heres-how-it-will-work/.
(4) Twitter to pay verified creators for ads in replies, Musk says - CNBC. https://www.cnbc.com/2023/06/10/twitter-to-pay-verified-creators-for-ads-in-replies-musk-says.html.


FAQ's

Are Twitter ads worth it?

Paid ads are typically a good option for raising brand awareness and increasing engagement with your company. They allow you a fair amount of control over your spend and budget and let you target the segments of audience you most want to reach.

How do I advertise on Twitter for free?

To make an ads account, first log in to Twitter.com and go to ads.twitter.com. There you can set up your ads account, where you will be able to promote Tweets from that handle.

What are the requirements for Twitter ads?

Quality. For your account to be eligible for Twitter Ads, it must comply with the Twitter Ads Quality Policy, specifically: Having profile and header photos that are not GIFs. Having a functional, live URL in your bio that is not gated, and accurately represents your brand and promoted product or service.

How much does it cost to buy Twitter?

$44 billion Twitter's board publicly and unanimously accepted the buyout offer for $44 billion, and Twitter was to become a private company once the transaction was completed sometime in 2022.

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