Advertising and marketing conglomerate Omnicom Group Inc has recommended that clients pause their spending on Twitter in the short term, according to an internal memo seen by Reuters.
Omnicom serves over 5,000 clients in 70 countries, including McDonald’s Corp and Apple.
The memo did not mention clients by name and it is not clear if any have paused Twitter advertising spending.
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 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.”
Ad sales represented over 90 percent of Twitter’s revenue in the second quarter.
Last month, US automaker General Motors Co said it had temporarily halted paid advertising on Twitter.
Musk starts assembling new cadre of leaders inside TwitterElon Musk, who acquired Twitter Inc. two weeks ago and immediately pushed out almost all of its top executives, has started to assemble a new group of ... Technology
Musk warns of Twitter bankruptcy as more senior executives quitTwitter’s new owner Elon Musk on Thursday raised the possibility of the social media platform going bankrupt, capping a chaotic day that included a ... Technology
Twitter reinstates ‘official’ tags after flood of fake accountsTwitter Inc. reinstated “official badges” for high-profile accounts to combat a growing problem of users impersonating major brands. The gray badge ... Technology