Advertising giant Omnicom, parent company of St. Louis-based FleishmanHillard, advises clients to halt advertising spending on Twitter
Advertising and marketing conglomerate Omnicom Group Inc., parent of St. Louis-based FleishmanHillard, has recommended that customers suspend spending on Twitter in the short term, according to an internal memo seen by Reuters.
Omnicom serves more than 5,000 customers in 70 countries, including McDonald’s Corp. and Apple.
The memo didn’t mention the clients by name, and it’s unclear whether any have suspended Twitter’s ad spending.
The move, first reported by tech news site The Verge, underscores growing skepticism among agencies and brands about the microblogging site’s future since Elon Musk’s $44 billion takeover. .
The Tesla CEO has accused civil rights groups lobbying Twitter advertisers of boycotting the service until Musk clarifies how he would control misinformation and hate speech on the service for a “massive” revenue cut. “.
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“Twitter’s ability to maintain its previous level of brand safety and efficiency measures appears to be hampered in the immediate term,” according to the memo.
“While OMG believes this is unlikely to result in a significantly higher risk environment for advertisers, the risk of being associated with harmful content may increase and as such should be considered. when deciding to use the platform.”
Ad sales accounted for more than 90% of Twitter’s revenue in the second quarter.
Last month, US automaker General Motors Co. announced that it had temporarily halted paid advertising on Twitter.