Elon Musk’s overhaul of Twitter has caused many advertisers to pause business on the social media platform, but Twitter has managed to secure at least one new ad buyer: Musk’s own company SpaceX.
The aerospace firm has ordered a larger advertising package to push the SpaceX brand on the social media platform, according to CNBC, which cites internal records at Twitter.
The ad campaign will promote SpaceX’s satellite internet service Starlink to users in Australia and Spain by featuring the brand on Twitter timelines. CNBC estimates SpaceX will likely spend upwards of $250,000 to push the brand for a full day.
In a tweet, Musk confirmed the ad buy, but he downplayed its significance. “SpaceX Starlink bought a tiny —not large— ad package to test effectiveness of Twitter advertising in Australia and Spain. Did same for FB/Insta/Google,” he wrote on Monday.
Still, the ad buy occurs as Musk scrambles to find ways to generate revenue at Twitter, which has often struggled to post a profit over the past decade. Musk also took on $13 billion in debt to buy the social media platform, which will require him to pay over $1 billion in interest to banks over the next 12 months.
But since taking over Twitter, Musk has risked alienating Twitter’s biggest revenue source: advertisers. Last week, he caused turmoil when Twitter began allowing anyone to spend $8 per month to buy a verified blue checkmark. In response, many users exploited the system to create verified, but fake accounts that impersonated celebrities and several major brands. In one case, a fake, but verified account claimed pharmaceutical giant Eli Lilly and Company was making insulin free for all, and the fallout likely caused Eli Lilly's stock to fall.
Twitter has since hit pause on sign-ups for purchasing verified blue checkmarks. In the meantime, Musk may face an uphill battle in trying to attract advertisers amid the ongoing economic downturn and an exodus of top staff members. Last week, he also warned employees that Twitter could face bankruptcy if the company fails to make a financial turnaround.
Still, Musk says he remains committed to improving Twitter. On Monday, he tweeted: “I’ve been at Twitter SF HQ all night. Will be working & sleeping here until org is fixed.”