Corporate giants, advertising industry executives, watchdog groups and civil rights leaders are sounding the alarm over proposed changes to Twitter that would loosen content moderation and charge users a monthly fee to receive a verification check .
General Motors Co. was one of the first US companies to announce it would ban advertising on the social media site as it evaluated Twitter’s new direction. Just days later, on October 31, IPG – one of the world’s largest advertising companies – reportedly recommended that its clients temporarily halt spending on the social media platform.
Michael Wall, a professor of the practice of marketing and entrepreneurship at the University of Washington in St. Olin School of Business. Louis, said all organizations should closely monitor the situation on Twitter to minimize risk to their brands.
“If changes happen to the platform that conflict with their values, then they need to discuss the appropriate next steps,” Wall said. “One strategic question I would consider, if Twitter is a core part of the organization’s growth strategy, is: How can we become a positive influence on the channel and become a leader in its proper use?”
“Going beyond Twitter, all organizations should have a documented social media strategy. It should include a strong rationale for using the platform and have policies in place including a response strategy for just such scenarios,” said Wall, who is also co-director of the Olin Center for Analytics and Business Insights.
Stuck between a rock and a hard place
Social media marketing enables companies to identify and engage with potential customers in a cost-effective manner. It has become an essential part of the strategic growth plans for many companies, large and small.
“Each social media channel is unique in terms of who uses it, why they use it and how they use it,” Wall said. “In my digital marketing course, we spend a lot of time working to understand this nuance because it helps us better determine which social platforms are valuable to our organization, how they bring value, and the steps to take to maximize their potential. .
For corporations for whom Twitter is an important communication channel, Wall acknowledged that it will be difficult to leave. “That said, if changes occur that lead an organization to move away from the platform, my position is that they can still achieve their objectives in other channels,” he said.
While social media marketing has become central to many corporations’ strategic goals, it’s important to note that the relationship is not one-sided, Wall said.
“One strategic question I would consider, if Twitter is a core part of the organization’s growth strategy, is: How can we become a positive influence on the channel and become a leader in its proper use?”
Michael Wall
“Even though Twitter makes money through other services, advertising is the biggest part of its revenue right now,” Wall explained. “It’s essential for them, which is why Musk is flying to New York to meet with advertisers. I expect that any changes made to the platform will aim to not alienate these critical stakeholders.”
As such, advertisers are uniquely positioned to hold Twitter accountable for its actions. And, in fact, most consumers today expect companies to take a stance on issues, even if they disagree with that stance, according to research conducted by Olin’s Stuart Bunderson, the George & Carol Bauer Professor of Organizational Ethics and Governance.
The Twitter controversy highlights broader concerns for organizations, individuals
As a professor, professional and parent, Wall said he has concerns about the dangers associated not only with Twitter, but all social media platforms.
“Concerns with Twitter were present before Musk took over, and all social media platforms come with similar threats not only to our organizations but, more importantly, to the well-being of us as individuals and society more broadly,” he said.
“The focus today is on Twitter, but just last year a Facebook whistleblower confirmed many concerns about the platform, while also introducing new ones. Another example is TikTok and concerns with how they use our personal data.
“Social media is not going away. As a result, organizations, individuals and elected officials must work together to ensure that everything possible is done to stop them from causing harm,” Wall said.
Social media is just one example of why values-based, data-driven leadership is so essential, Wall said.
“To meet the challenges of today’s technology-enabled world, we need leadership that can make balanced decisions with an unwavering commitment to personal and societal values.”
Is Twitter doomed?
Musk’s first few weeks as Twitter’s new Chief Twit have been marked by controversy, but it’s not too late to make amends.
“I hope Elon Musk will be as committed to making Twitter a safe space as he has been in all other aspects of his professional life,” Wall said. “My hope is that Twitter can allow free speech while also implementing new policies and technology capabilities to thwart the efforts of bad actors. It is difficult, but it is possible. I urge him to deploy the talent and empower them with resources so they can create processes to ensure that happens.”
If given the chance, Wall would offer the following advice to Musk: “I would recommend that he take the threats and challenges of the platform seriously and not be harsh with his comments. He has considerable reach and authority. In other words, his comments are seen by many people and are influential. In addition to actions, be mindful of communication.”
