December 3, 2022

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GM Temporarily Suspends Ads on Twitter After Musk . Acquisition

GM Temporarily Suspends Ads on Twitter After Musk . Acquisition

Detroit – General motors The company told CNBC Friday that it is suspending its Twitter ads after Elon Musk’s takeover of the social media platform.

The Detroit automaker, a competitor to Mask TeslaHe said he’s “pausing” the ad as it evaluates Twitter’s new trend. GM added that it will continue to use the platform to interact with customers but not pay for ads.

“We are engaging with Twitter to understand the direction of the platform under its new ownership. As in our normal course of business with a major change to a media platform, we have paused our paid advertising. Customer service interactions on Twitter will continue,” the company said in an email statement.

Under CEO Mary Barra, Detroit was among the first automakers to announce billions of dollars in spending To better compete with Tesla Regarding electric cars.

A GM brand is seen during an event on January 25, 2022 in Lansing, Michigan. General Motors will create 4,000 new jobs and keep 1,000, and significantly increase battery cells and electric truck manufacturing capacity.

Jeff Kowalski | AFP | Getty Images

Other car companies, including Ford MotorAnd the Stilants And the the alphabetOwned Waymo, did not immediately respond to requests for comment on whether they plan to suspend ads or stop using the social media platform in the wake of Musk. $44 billion purchase Twitter. electric truck maker Nicola She said she had no plans to change anything about the platform.

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The future direction of Twitter was central to the acquisition story. Musk said he is a “free speech tyrant,” who will re-account former President Donald Trump, who was banned for his tweets during the January 6, 2021 Capitol Rebellion. On Friday, Musk said that Plans for a Content Oversight Board It will not reinstate any accounts or make material decisions about content before it takes place.

Musk also said in a statement to advertisers this week that he cannot allow Twitter to do so “A free hell scene for all.”

Henrik Fisker, CEO of EV startup Fisker Inc. He deleted his Twitter account earlier this year when Twitter’s board of directors approved Musk’s offer to buy the company and make it private. Contact Fisker Inc. The use of Twitter, which every major auto brand uses for customer acquisition and marketing.

Musk has always bragged that Tesla doesn’t pay for traditional advertising, a cost that has added to traditional automakers’ brands over the years.

Instead, Tesla rewards people who manage or are members of Tesla Owners Clubs as well as other social media influencers who promote the company’s products, stocks, and shares on social networks, particularly Twitter and YouTube, as well as on fan blogs.

They are often given early access to Tesla products, such as the company’s Full Self Driving Beta program, and are given passes for company events where attendance is limited.

In September 2020, Tesla evaluated a shareholder proposal to start strategic paid advertising to educate the public about its vehicles and its charging network. Tesla’s board recommended against it, and shareholders with the board voted against starting to pay for traditional advertising campaigns.

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In the company’s 2021 Annual Report, Tesla wrote: “Historically, we’ve been able to generate significant media coverage for our company and products, and we believe we will continue to do so. This media coverage and word of mouth are the current primary drivers of our sales leads and have helped us achieve sales without traditional advertising and with marketing costs. relatively low.”

You reported marketing, promotional and advertising costs that were immaterial for the years ended December 31, 2021, 2020, and 2019 in financial filings with the Securities and Exchange Commission.

CNBC’s John Rosivier contributed to this report.