Twitter ad business could surge as advertisers pin hope on Musk

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Optimism is taking hold and is playing out in two ways.

But in the weeks since April 25 when the Tesla Inc chief executive announced the deal, Madison Avenue's attitude to Musk's upcoming version of Twitter is evolving.Some ad buyers are hoping to extract better deals from a company undergoing a massive transition. Others are betting that Musk, who has dribbled new product ideas daily on Twitter, can deliver what Twitter has fallen short on - launch new products more quickly, according to advertising executives who spoke with Reuters.

According to slides Musk presented to investors, he expects Twitter to reach 931 million users by 2028 from 229 million in the most recent quarter, and ad revenue to more than double to $12 billion, representing about 45% of its total revenue in the same time frame, the New York Times reported. One ad agency executive who declined to be named said they expected negotiations to begin in the coming months to strike lower ad prices on behalf of some clients, as Twitter may be more flexible during the period of uncertainty before Musk closes his takeover deal.

Ad and marketing executives who spoke with Reuters said they are watching closely for changes Twitter could make to the platform, and most advertisers have not yet made significant shifts in spending, tamping down fears of abandoning Twitter.

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