Last Friday, Elon Musk announced that Linda Yaccarino will become the new CEO of Twitter.
Starting in six months’ time, Yaccarino will focus “primarily on business operations” while Musk will transition to an executive chair and CTO position, overseeing product design and new technology.
The appointment comes at a time in when advertiser trust in the social media app is at an all-time low. Though Musk has made many attempts to salvage revenue, in January, Standard Media Index (SMI) found that the company’s ad spend had plummeted by 71% in December 2022.
During the billionaire’s six -month reign, a series of controversies has seen a flurry of advertisers decide to flee from the platform. Unfavourable software changes, brand impersonations and questionable account reinstatements have spurred brands to pause and even ditch investment in the app.
A month ago, former Dentsu chairman Nick Waters urged advertisers to quit using the “unstable” platform. Now the CEO of brand consultancy Ebiquity, Waters has said that the majority of his firm’s clients have elected to step back from advertising on Twitter for the “foreseeable future”.
What will Linda Yaccarino bring to the table?
The new CEO is the former head of advertising for NBCUniversal where she played a major part in the launch of NBC’s ad tier for its Peacock streaming service.
Yaccarino collaborated closely with big-name brands and forged relationships in new media with the likes of YouTube, Snapchat and Apple News, helping NBCUniversal increase its ad revenue to highs of £8 billion ($10 billion).
An advocate for finding more efficient ways to measure advertising effectiveness, Yaccarino also previously launched One Platform, a digital ad purchasing software which is now pivotal to the way the industry works.
The industry vet – who is also an executive chair for the World Economic Forum – is known by some as the ‘velvet hammer’ for her negotiating style.
What does the ad industry make of the new CEO?
The one question on everyone’s mind is – will Musk actually let the new CEO take the reins?
Socially Powerful founder James Hacking is interested to see how Yaccarino’s prioritisation of brand safety will merge with Musk’s mission to have “absolute” free speech on Twitter.
“These two positions are going to be in a state of conflict, so I think this might well be the deciding factor in whether Yaccarino can salvage ad spend for Twitter or not,” Hacking said. “With years of experience building out media networks, and with a reputation for being a ‘marketer’s leader’, she knows how to make Twitter a brand safe environment and to improve its overall appeal to advertisers.”
Hacking believes that the implementation of her plans depends on how much liberty she is given to make the requisite changes. He added: “She’s an ideal hire for the state the business is currently in, but only time will tell if she’s given enough freedom to make Twitter a serious advertising business again.”
IPA president and GroupM EMEA & UK CEO Josh Krichefski also believes that the real question is how much of Elon Musk’s plan for the future of Twitter is advertising-based.
“His stated plan is to turn the platform into an integrated messaging, payments and commerce app and he remains in charge of this plan as its executive chair and CTO,” he said.
“Twitter’s problems are only advertising in part.”
The IPA president recognises Yaccarino as a “highly regarded advertising sales executive who brings to the role a great deal of experience, capability and has excellent relationships with advertisers and their agencies.”
“She is also viewed by analysts as a safe pair of hands with a capacity to rebuild trust with agencies and brands.”
Social media marketing expert, Chris London, is positive about Yaccarino’s appointment, affirming that there are reasons to be optimistic about her ability to turn things around.
“Yaccarino has a proven track record of success in the advertising industry, having worked for major media companies like NBCUniversal and Turner Broadcasting,” he added.
“If she is successful in her role at Twitter, it could have a positive impact on advertisers’ declining view of the platform as an advertising platform. Twitter has struggled in recent years to compete with other social media platforms like Facebook and Instagram, and advertisers have become increasingly frustrated with the limited reach and engagement of Twitter ads.”
Despite the low-held opinion of Twitter among brands, London feels that the implementation of new strategies and initiatives which serve to drive greater engagement and value for advertisers could lead to a renewed interest in Twitter, adding that: “This, in turn, could lead to increased ad spend and a more favourable view of Twitter among advertisers.”
The industry appears to be in favour of Yaccarino having the ability to salvage Elon Musk’s unappealing advertising platform. How much power the new CEO will be given, however, is yet to be seen. In the meantime, let’s just hope Nintendo’s Mario doesn’t stick his finger up at the world again.
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