Morgan-Stanley convention: Musk thinks he can repair Twitter’s advert enterprise after derailing it

(CNN) Elon Musk on Tuesday supplied an optimistic image of how Twitter can enhance the promoting enterprise it has helped derail and increase earnings, whereas admitting it’s proving difficult after a number of rounds of layoffs, the social community to maintain going.

Talking at a Morgan Stanley convention, Musk laid out his imaginative and prescient to spice up Twitter’s core promoting enterprise by using the usual technique of many of the firm’s opponents: enhancing the relevance of the adverts it runs.

“The promoting relevance is the most important factor,” Musk stated. “And that is going to sound completely weird, however Twitter didn’t take into account promoting relevance till three months in the past.”

With this alteration and main price cuts throughout the corporate, Musk believes Twitter has “gained an opportunity to be money circulate constructive within the subsequent quarter.”

“Sooner or later, Twitter can have very related and helpful promoting,” Musk stated. “And since it’s helpful, as a result of it’s related, there’s going to be a large improve in gross sales as a result of it’s helpful now. So I’m very optimistic concerning the future. It’s been a really tough 4 months, however I’m optimistic concerning the future.”

Since buying the platform in late October, Twitter has seen a mass exodus of high manufacturers as Musk relaxed some content material moderation insurance policies, restored inflammatory accounts and made a collection of erratic remarks on politics and world affairs. Musk, who has beforehand tweeted about his hatred of promoting, was fast to guess on bolstering a paid subscription providing as a substitute, but it surely’s reportedly struggled to achieve traction.

He additionally took the time to thank advertisers who’ve stayed loyal to Twitter throughout its bumpy takeover, together with Disney and Apple.

However at the same time as Musk tries to develop Twitter’s adverts enterprise, which has lengthy made up nearly all the firm’s income, there are severe doubts concerning the platform’s capability to remain on-line.

Twitter has been inundated with outages, together with a big service disruption on Monday, and different person complications since Musk took over, doubtless associated to the a number of rounds of mass layoffs which have taken place below his watch. On Tuesday, he blamed the “overly advanced” underlying know-how for among the latest service disruptions.

“The codebase is sort of a Rube Goldberg machine, and when you zoom in on a part of the Rube Goldberg machine, there’s one other Rube Goldberg machine after which one other one,” Musk stated at Tuesday’s occasion. “So it’s fairly tough to maintain this factor going after which additionally tough to maintain creating the product as a result of it’s actually overly advanced to say the least.”

“We’re going to make a change that appears like a small change someplace, which then causes a large disruption,” he stated. Musk stated Monday’s outage was the results of “a small change in 1% of Twitter’s person base.” [that] was a catastrophic change for 100% of Twitter’s person base.”

On the similar time, Musk continues to make controversial remarks that would discourage manufacturers from returning to the platform or growing their spending on the platform. Musk has been criticized by some this week after publicly poking enjoyable at a Twitter worker with a incapacity who requested the Twitter proprietor if he had been fired.

At Tuesday’s occasion, Musk defected to numerous unbiased websites, together with repeated assaults on legacy media organizations. “What I might say to advertisers and types is, you already know, use Twitter your self and imagine what you see on Twitter, not what you learn within the papers,” Musk stated. “As a result of what you see on Twitter is actual and what you learn in newspapers shouldn’t be.”