According to reports published late last week, Twitter is dangling all kinds of carrots in front of advertisers to entice them back to the platform.
What does this mean?
Twitter is now suffering. Companies are slashing their advertising budgets left, right, and center as the economy slows down and profit margins become tighter. The cuts, however, also affect people personally. See, brands have avoided the big blue bird ever since Musk started to loosen the platform's moderation regulations. And these are no insignificant businesses: United Airlines, General Motors, and Mondelez are just a few of the ones who have ceased placing advertisements on the site, severely hurting Twitter's $5 billion revenue. That's terrible news for Musk, who must pay $1 billion in interest per year after taking out large loans to purchase the company. Offer big spenders a variety of incentives, such as matching spending over $500,000 and boosting impressions, as his answer.
Why should I care?
The bigger picture: Actions have consequences.
The advertisements team is now so short that several organizations allegedly lack a contact at Twitter, which will hardly assist increase sales. Perhaps eliminating half of the Twitter staff wasn't such a smart move. In addition, experts doubt that the firm's incentives will have much of an impact. Advertisers might conclude that Twitter's discounts aren't worth the danger of being connected with problematic content because a hard-won reputation can be lost in a matter of seconds.
Zooming out: Tesla aims low.
The second little hobby horse that Musk has, Tesla, must not be overlooked. The company is still in charge of the EV market in the US, according to data released last week, but its share has decreased from 79% in 2020 to 65%. Musk does, however, have a strategy. He recently revealed that Tesla is working on a sub-$30,000 vehicle, which he plans to use to attract customers at the lower end of the market.
Source: S&P Global Mobility
Keep reading for our next story...
Bad News, America: You’re Hired
The US economy created more jobs last month than was anticipated, according to figures released on Friday.
What does this mean?
The headlines may suggest that finding a job these days is difficult, but mass layoffs at companies like Meta and Twitter are the exception, not the rule. Therefore, even though the retail, transportation, and warehousing sectors lost employees last month, the gaps were more than filled by leisure, hospitality, and healthcare. Overall, the US economy created 263,000 new jobs in November, easily exceeding economists' predictions of 200,000. Additionally, there are still far more open positions than there are workers to fill them, so employers are raising wages to draw in candidates. It is understandable why average earnings increased by 0.6% from October to November, exceeding expectations and reaching a new high.
Why should I care?
For markets: Fed up.
The US economy has now created an average of 392,000 new jobs per month this year; however, the Federal Reserve (the Fed), which emphasized last week that job growth is still excessively rapid, won't be comforted by this statistic. And now, all of the Fed's hard work could be in jeopardy as rising wages threaten to increase inflation once more. That suggests that another 0.75 percentage point increase could be on the horizon later this month, a possibility that sent US markets into a tailspin when the news first surfaced.
Source: Reuters
The bigger picture: Putting food on the table.
Over in Europe, where costs are rising at an alarming rate, Christmas dinner this year will likely be the most costly the British have had in at least ten years. According to data released on Friday, the average Christmas meal will cost 22% more than it did last year as the price of celebratory mainstays like turkey and Yorkshire puddings continues to rise. Even a vegan option that is free of cruelty is expensive this year at 14% extra.
Source: Bloomberg
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