Omnicom pauses Twitter ad spend, Musk raises bankruptcy

Chris Pash
By Chris Pash | 14 November 2022
 
Credit: Alexas Fotos via Unsplash

Global advertising group Omnicom is among industry voices warning advertisers during Twitter's current troubles following the $US44 billion takeover by billionaire Elon Musk.

And Musk, said to be the world's richest man, has reportedly warned of a potential Twitter bankruptcy.

Musk also sent an email to staff ending remote work for most.

The stream of news from the social media platform continues to flow strongly, since Musk sliced Twitter's 7,500 staff numbers by half

On top of a advertising pause by major advertisers, including Volkswagen, General Motors, and General Mills, several reports placed Omnicom with fellow global agencies Havas and IPG in telling clients to take care with Twitter. 

Reuters newswire and technology news site The Verge quoted an Omnicom internal memo, titled Twitter - Continued Brand Safety Concerns, recommending that clients pause their spending on Twitter in the short term.

The memo said there was “evidence that the risk to our clients’ brand safety has risen sharply to a level most would find unacceptable”.

And: “We recommend pausing activity on Twitter in the short term until the platform can prove it has reintroduced safeguards to an acceptable level and has regained control of its environment."

Among the issues are the layoffs in Twitter's trust and safety teams, the resignations of senior executives, and the impersonation accounts with "verified" blue ticks.

Some of the latest departures include chief information security officer Lea Kissner chief privacy officer Damien Kieran.

The Wall Street Journal reports Musk telling employees in an all-hands staff meeting that he wasn’t sure how much financial runway the social-media company still has and that “bankruptcy isn’t out of the question”.

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