Vehicle manufacturers are big advertisers. Social media platforms are huge data collectors. And now Musk of Tesla owns this data.
By wolf richter For wolf street,
Automakers spend a lot on advertising, and they advertise heavily in social media. But now, one of the social media platforms, Twitter is owned by the CEO and largest shareholder of Tesla yesterday. And automakers that compete with Tesla, and are getting their watches cleaned by Tesla, are now finding themselves advertising on Elon Musk’s platform. And when you think about it, it’s kind of a hoot.
No one likes to advertise on a competitor’s platform for all kinds of reasons, but competitor consumer tracking, especially on social media platforms, gathers data and can gain valuable insights into current and potential customers and their reactions to products. Is. Advertisement – without passing that information to the vehicle manufacturer.
Advertising on a competitor’s social media platforms is a particular problem, because those platforms collect vast amounts of user data — data on your customers and potential customers that you can’t actually see yourself, unless the platform shares it with you. decides not to share.
General Motors is the first automaker out of the gate: Musk announced on the first day after closing the Twitter acquisition that it “paused” its paid advertising on Twitter.
“We are engaging with Twitter to understand the direction of the platform under its new ownership. As is the normal course of business with a significant change to a media platform, we have temporarily paused our paid advertising. Our customer care conversation will continue on Twitter cnbc,
Stellantis, which owns the Chrysler, Dodge, Jeep and Ram brands, among a host of other brands, Tweeted via its Citroën account this morning, specifically alluding to the issue: “Greetings to the social media platform owned by one of our competitors.”
It’s not about advertisers’ concerns, if any, with Musk’s potential content moderation policies. Musk already tried to allay those fears with his open letter addressed to advertisers, which was suddenly filled with LaVey-dovey language, posted on Twitter, Undoubted. “In addition to abiding by the laws of the land, our platform needs to be warm and welcoming to all.” And he added, “I firmly believe that advertising, when done correctly, can amuse, entertain, and inform you.” And he added, “Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise.”
But for automakers, it’s about competition and how much information you want to give your competitor about your customers, potential customers, their reactions to your products, and their interactions with you.
For example, Ford used Twitter to promote its electric pickup truck, the F-150 Lightning, which is a direct competitor to Tesla’s as-yet-unavailable Cybertruck. Ford created a massive “reveal” campaign on Twitter involving a variety of strategies and partners, which Twitter itself described in its marketing post, “How Ford Launched Its F-150 Lightning”. Helped drive the electric vehicle conversation on Twitter.”
Twitter claimed Ford had 1.56 billion “brand impressions” on Twitter, 39% “EV share of voice on Twitter”, 4.5 million “livestream views” and whatever – assuming these weren’t All Bots and fake accounts, which would be a hoot as well, now that Musk owns the shop.
Does Ford really want Tesla to have all this data? I doubt it. But Musk bought the data and Tesla will have it.
And Musk isn’t around: Already on Thursday, Tesla engineers showed up at Twitter’s headquarters to review Twitter’s code, according to Bloomberg,
Musk’s wildly amusing acquisitions of Twitter over the months have played out before us, of course, a lot of navel-gazing and head-scratching among automakers about what to do with their Twitter ads and their Twitter accounts and their conversations . with people on twitter.
GM didn’t just wake up this morning and suddenly realize Twitter is owned by the Tesla guy. They prepared for it, and they planned for it, and now they’re trying to sort it out with the new owners, if anything at all. Other automakers and their advertising agencies are grappling with this as well – because advertising on a competitor’s social media platform isn’t a good proposition, and there are plenty of other places automakers could deploy their advertising dollars.
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