Donald Trump’s Constant Tweeting Is Hurting Twitter, Advertisers Steer Cleer – Analyst

Contrary to popular expectations, US President Donald Trump‘s constant tweets are not resulting in any benefit for tweeter. It is actually hurting twitter. According to analyst Richard Kramer, Twitter is not observing a boost in business from the “Trump Effect”, as advertisers of the platform to avoid their brands getting targeted.

Twitter shares were taking hits in premarket trading after forward guidance missed expectations by a large margin and quarterly revenue was far below expectations.

“I think whatever your political views, it’s clear that Trump is extremely divisive, and this isn’t really a positive for advertisers.” – Richard Kramer

Kramer said his firm still has a negative view on Twitter because although monthly average users are growing, the platform is becoming riskier for advertising, which is a main profit driver for competitors like Facebook and Google.

“This is not a platform that advertisers will want to, in advance, associate themselves with,” Said Kramer pointing out that the ad campaigns are usually planned much in advance.

And of course, he cited a perfect example to illustrate his point:

“Can you imagine Nordstrom running a campaign on Twitter, pre-buying it or planning it … and finding out that the president is slating them on the same platform?”

On Wednesday, US President Donald Trump lashed out at Nordstrom,  for discontinuing sales of his daughter Ivanka’s brand. Nordstrom’s shares went down following the tweet from the President. Though the brand found support in many others, there was enough at stake.

My daughter Ivanka has been treated so unfairly by @Nordstrom. She is a great person — always pushing me to do the right thing! Terrible!

— Donald J. Trump (@realDonaldTrump) February 8, 2017

“There are certain types of internet content that advertisers don’t regard as brand-safe. In the case of Twitter, with the abuse, with the vitriol that’s on it, there’s a lot of brands that just don’t want to be associated with that sort of content.” – Richard Kramer.

You can watch Richard Kramer’s interview with CNBC below:

Stay tuned for more, only on Startup Echo.

See Also:

Mark Cuban Takes A Stand In Support of Nordstrom, Hits Out At Donald Trump

Mark Cuban Says Donald Trump Won’t Last Four Years

Under Donald Trump’s Presidency, We’re Going To Have A Dollar Collapse Like The 1980s – Strategist

Elon Musk says activists should be happy that he’s advising President Trump

#DonaldTrump #Twitter #RichardKramer #Nordstrom #Ivanka #America #PresidentOfTheUnitedStates #POTUS