Stellantis has temporarily halted all advertizing campaigns on Twitter in response to Elon Musk’s takeover of the social media firm.
The automaker is just the latest high-profile global company to pull its paid ads while it waits for the radical changes taking place at Twitter to shake out. Volkswagen and General Motors have already axed their ad spots, as have other firms from outside the automotive sector.
“We’re pausing paid advertizing posts until we have a clearer understanding of the future of the platform under its new leadership,” a Stellantis spokesperson told Reuters. Stellantis’s vast portfolio of brands includes Dodge, Ram, Jeep Fiat, Peugeot, Alfa Romeo, none of which will be allowed to advertize on Twitter until further notice.
Musk has already admitted that Twitter’s revenue has suffered a massive decline since he took over on October 27. The Tesla CEO was obliged to go through with the Twitter buyout to avoid an impending court case arising from him pulling out from an earlier agreement to purchase the social media firm.
Related: Elon Musk Initiates Layoffs At Twitter, Class Action Lawsuit Is Filed Against The Company
Musk claimed that the $44 billion he paid far exceeded the company’s worth and quickly implemented multiple cost-cutting programs that included firing a large chunk of Twitter’s workforce with almost no notice. Among other initiatives, Twitter now charges users $8 to be verified and have the blue tick alongside their name, and has made noises about stealing content creators from YouTube with the promise of a bigger share of monetization revenue.
But in the short term none of those schemes is going to help fill the very massive hole in Twitter’s finances created by the loss of advertizing income. We reached out to Volkswagen when news broke about it pausing advertizing campaigns and received this response:
“As Twitter has announced to revise their brand safety guidelines, the Volkswagen Group has recommended to its brands to pause their paid activities on the platform until further notice. We are closely monitoring the situation and will decide about next steps depending on its evolvement.
The current decision does not refer to organic activities. We are closely monitoring the situation and will decide about next steps depending on its evolvement.”