Last week, we reported on how over half of marketers had stated they weren’t concerned about Elon Musk’s takeover of Twitter. Now, the billionaire CEO has secured around the region of $7bn (£5.68bn) in extra funding – as well as outlining his vision for the app.
The extra $7bn comes in the wake of his takeover bid of the platform for a whopping $44bn ($35.7bn). What’s more, a pitch deck was obtained recently by the New York Times, and it outlines an overview of Musk’s plans for the social media app.
Increasing user base
Currently, Twitter has 229 million daily active users. Musk plans to increase this to 600 million by 2025, increasing again in 2028 to a whopping 931 million.
As well as increasing its user base, Musk plans to increase the revenue of the platform too. In 2021, the platform brought in $5bn (£4.05bn) in revenue, and it has planned to raise this to $26.5bn (£21.5bn) by 2028.
Over the next year, Musk is planning to let go of approximately 1,000 staff members. However, this will be counteracted by then hiring around the region of 2,700 new staff members in the next three years.
Reducing advertising income
At present, income from advertising amounts to 90% of Twitter’s revenue. Interestingly, Musk plans to reduce this to around 45%, leading to the question of what he plans to introduce to pick up the remaining 45%.
Subscriptions are said to be a key focus for Musk, and this will provide a way to boost non-advertising income. Twitter’s subscription service, Twitter Blue, has not seen much success since its introduction last year, but Musk is expecting subscribers to rise within the next three years to 69 million users. Part of encouraging this will be using subscriptions as a verification process, with those that pay receiving some sort of verification checkmark to indicate they are real.
However, Musk has said that the platform will always be free of charge for the casual user, but those who use the platform for commercial or government-related use may incur a charge:
Twitter will always be free for casual users, but maybe a slight cost for commercial/government users
— Elon Musk (@elonmusk) May 3, 2022
Whether these plans are brought into fruition or not, it’s clear that Musk has big plans and that change for Twitter is coming. Keeping abreast of such changes in the online world is key to maintain an effective business presence online, and here at Engage Web, we can help. Get in touch with us today to learn more.