© Reuters. FILE PHOTO. The Twitter logo is visible outside New York City’s offices, U.S.A, on November 9, 2022. REUTERS/Brendan McDermid/File Photo
(Reuters) – Omnicom Group Inc, an advertising and marketing conglomerate, has advised clients to halt their Twitter spending in the short-term according to an internal memo that was seen by Reuters.
Omnicom serves more than 5,000 clients in 70 different countries, including McDonald’s Corp. and Apple. It was not possible to identify clients in the memo and it is unclear if any have stopped spending on Twitter advertising.
The move, first reported by tech news site The Verge, emphasizes a growing skepticism among agencies and brands about the micro-blogging site’s future since Elon Musk’s $44 billion takeover.
The Tesla (NASDAQ:) CEO has blamed civil rights groups lobbying Twitter advertisers to boycott the service until Musk clarified how he would control misinformation and hate speech on the service for a “massive” revenue drop.
“Twitter’s ability to maintain their previous level of brand safety measures and effectiveness seem impeded in the immediate term,” according to the memo.
“Whilst OMG believes this is unlikely to result in a significantly higher risk environment for advertisers, the risk of being associated with unsafe content could rise and as such should be considered when deciding on use of the platform.”
In the second quarter, more than 90% of Twitter’s revenue came from ad sales.
U.S. automaker General Motors Co. (NYSE:) stated last month that it temporarily suspended paid advertising on Twitter.
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