Speaker 1: So we've made progress on pretty much every front, and
I think it's worth it's worth hearing about that progress
from the team, and they will also ask answer questions,
and I'll look at my x feed as well see
if there's any zingers in there that I can answer.
But the I guess the main message we wanted to
convey is that the advertising technology for X only Twitter
has improved dramatically so that the targeting is actually appropriate.
So previously there really wasn't any targeting, so people basically
see spam ads meaning and a spam ad is an
ad that is that doesn't meet the user's needs, whereas
an AD that is that meets the user's needs if
it's a product or service that they want, especially when
they want it, that is actually content. So our goal
is to move as as quickly as possible to having
ads that for products and services that directly meet the
needs of you users. And we're looking for actually very
specific product ads. So we certainly welcome we welcome brand advertising,
we welcome sort of general message advertising. But the thing
we're actually asking advertisers to do is to is to
now consider doing ads for very specific products and services
so we can actually connect users with products and services.
Speaker 2: That I would make their lives better.
Speaker 1: And that's we finally have the technology to do that
by using AI matching.
Speaker 2: Essentially, we.
Speaker 1: Look at what users do publicly, you know, what, what
do they interact with, what do they like, what they've
what posts they view, and and then that creates essentially
the set of interests of the user. And then the
same thing with the ad. We see what what users
pay attention to what ads and then and that essentially
creates a profile for that ad, and we correlate the
user interests with that particular product of service, and that
results in radically better matching. And but this year, a
number of times I've talked to people and I've said
how many times for how many years have you used
x RA Twitter?
Speaker 2: And they might say as long as ten years.
Speaker 1: And I'll say how much have you bought on x
in even going back to when it was Twitter, and
they'd say almost nothing, if not nothing. And we want
to change that completely to where you can even go
on x and you look forward to the ads where
you're actually interested to see what ads show up, because
they're going to be for products and services.
Speaker 2: That you want.
Speaker 1: And and that's that's the sort of nirvana goal that
we have here, and we're using grock AI to help
achieve that goal.
Speaker 2: That's that's really fundamental. And then we've also been asked.
Speaker 1: About as related to grock, if somebody has a query
on groc, should we perhaps have some advertising there. We
we haven't done that yet, but we are working on that.
But yeah, Number number one request of advertisers is very simple,
which is to put product and service, very very specific products,
very specific services on the system so that GROC can
match the your products and services to you know, the
six hundred million monthly users that we have on the system,
and when you when you consider total number of users
on on the X system, it's closer to a billion.
Some only will come in every you know, three months
or something like that, but total live people with accounts
is about a billion on the X platform. And it's
also very much worth emphasizing that the users on the
X platform have the highest buying power of any audience anywhere, so,
you know, so certainly have a lot of respect for
the advertising platforms on you know, TikTok or even snap
Chat and others, but very often the user base is
very young and does not have the money to buy things.
Our our user base consists of the smartest and wealthiest
people in the world, so it's a no brainer to
show them stuff.
Speaker 2: Anything they see they can buy.
Speaker 1: So it is a it's it's the wealthiest advertising demographic
I think of any platform social media, orial media on Earth,
and I really want that message to resonate. Something that
I think is actually very important is is to actually
let the let the grock API, let the grock AI
actually figure out the right targeting. Sometimes advertisers want to say, okay,
we want to target men or women of a particular
age or something like that. But but actually, if you're
i mean, for augment's sake, let's say you're selling gardening tools,
you just care that somebody likes gardening. You don't care
if they're an eighty year old woman or twenty year
old men that you just care that they they're interested
in gardening.
Speaker 2: And that's what groc can figure out.
Speaker 1: So historically you have to do these yesses based on
demographic breakdown, but you don't have to do that anymore.
You can literally just let the AI do everything and
it actually ends up with a better outcome.
Speaker 2: So that's I'd encourage, you know, just just let the AI.
Speaker 1: Do its thing and and it'll it'll find your product,
it will match the product service to the user's needs,
and and that'll actually be the best best outcome if
you advertise a part to service that the user needs
when they want to, that's the ideal moment. So like,
let's say, in speaking of reply ads, that there's a
reply thread discussing auto insurance and someone's maybe unhappy with
their existing auto insurance provider, and they're discussing, you know what,
what what the other options are? That would be the
perfect location to put an car insurance. It's like, what
about us? Because that's that's that's both what somebody is interested.
Speaker 2: In and when they're interested in it. So reply ads
can be very powerful.
Speaker 1: Talking really just means reducing the probability that an AD
is spam for a user, then an AD is not applicable.
We do actually care about the aesthetics of ads. That
a beautiful AD is actually quite important to us because
if an AD is ugly or strident, that damages our product.
If somebody's scrolling through and they see an AD and
that that ad is jarring, and and you know, just
really upsetting or ugly, then that actually damages our user
experience and that damages our products. So we actually want
to favor ads that are beautiful. So that just just
clear that that that ads will will receive, you know,
a slight boost if they are aesthetically I mean, we're
not talking about the need to win some contests or something,
just just not jarring and ugly. So I have a
personal aversion to are and ugly ads, and I'd actually
rather make less money.
Speaker 2: Then if then have you.
Speaker 1: Know, strident and ugly ads in the system, and then
we are changing the cost of an ad proportionate to
how much vertical space it takes, just as a full
page ad in a newspaper costs a lot more than
a quarter page ad. The smaller the ad is, the
more ad impressions will get for a given dollar. But
even in that case, so I think, you know, there's
could be a lot of blank space around the ad itself.
It should really be the image should be shortened to
be relevant. There's no point in having a bunch of
blank space around that we wanted. General brand advertising can
certainly find, but that doesn't require much targeting if it's
a big brand. But for specific products, Like so your product,
you know, helps people sleep better, and that obviously would
be the ideal time to show users and add for
your product. It would be if there's any discussion about sleep,
or if they've made some comment about like not getting
enough good sleep and maybe the a sleep you know
mattress would solve their their issues.
Speaker 2: That's that's obviously would be perfect.
Speaker 1: And then you know, I'm particularly looking for unregretted user purchases.
So a user sees a product or service, buys a
product or service and it's and it solves their need,
then I think we've done something fundamentally good.
Speaker 2: Yeah. Yeah.
Speaker 1: If if people have received a product or service that
has made their lives better so even that they have
no post post purchase regret, in fact, they're happy, then
we've done a good thing for the world. So that
that's our goal. I'd really advise to be as specific
as possible. So even if you've got say a large
number of products, my recommendation would be to put what
you think are the most likely products that people would buy,
because if you give sometimes if you give people too
much choice, they're like, I don't know what to do here.
You know, maybe just give them what is probably the
best choice and then they can always you know, maybe
go to the website and change that or something.
Speaker 2: But if you try to give.
Speaker 1: People as as specific as solution to the problem as possible,
I think that's the right way to go. Yeah, and
you can, you can upload several several products, but but
it's you know, and it's I think it's like sometimes
the product carousel. That's okay, but you really you really
want to just you only have the user intention for
maybe a second or two, and you want to just
have that. It's like, okay, it's this one, go for it.
And you can put in different products and see which
ones are more resonant. But we're trying to be as
as precise as possible, so so we have the highest
product that grock has the highest probability of matching a
product of service with product product or service with the
user's actual needs. Yeah, in fact, you can do you
can do that right now if you if you if
you use grock and you can actually ask grock just
go you know, maybe use grock expert Mode. And I'd
recommend this to everyone because you can do it right now.
Is you know, maybe you can post a probably the
best way to do this, certainly for copy, for text copy,
you could say what is the best way to represent
this and and ask GROC to give you some recommendations.
You can literally just do that on groc and the
X app or the groc app or grock dot com
and I think you'll see some interesting suggestions because grock.
Actually one of the big advantages of the GROC AI
is that it's connected to the the the X system,
so it actually understands the X system. It's ingested the
entire it's done training on the entire X you know,
all of the public user posts it's done training on,
so it actually has a good a good sense of
what people respond to already. You just literally asked Rock
right now. Yeah, I mean, so we have sort of
what I call grock, you know, grock. Imagine it's kind
of version zero point one, kind of beta. And so
you can take any image and and and turn that
into a six second video with the with rock right
now in like sixteen seconds, and you can you can
you can grock will it's somewhat will randomize it, so
you can actually do manyferent videos and generally the video
is going to be a little bit more compelling than
a static image, and you can also give rock com
matching custom instructions. This is just kind of I literally
call it boson zero point one of the our product.
We've got a much more sophisticated version coming out in
two or three weeks where you can which way you
can add voiceover, you can add in fact, technically right
now we just added a future where you can do
some voiceover, so it's worth trying out.
Speaker 2: Like basically, I check.
Speaker 1: Update your grock app and your AX app almost every
day because we're rolling out upgrades and features and bug
fixes almost every day. And yeah, you'll just be able
to say that Grock just make me a video ad
or an image ad or whatever or text ad that
is that accurately describes my product and it is likely
to appeal to the audience based on what Grock knows
about X, and it pretty much knows everything about X,
then yeah, it should be super easy to create a
text image or video ad. You can upload any image
right now, including an image of your product, to two grock,
so you can do it from your phone in like
five seconds, so any or or from your browser you
can take You can take an image of your product
and turn that into a video and then you can
actually say, now add something new to the video. But
things are evolving very quickly, so like you said, up
they trap almost every day and there'll be new features
and functionality. The rate of evolution is very fast, and
we are implementing that. We are seeing a little bit
of where the same ad is shown to too many people,
the over frequency issue. In fact that that was just
raising that with Roman Uh right before this meeting, and
we should see a significant proven to that by Friday.
We're actually pushing a change that reduces the over frequency
problem literally in two days. This's clearly times when a
single users shown the same ad far too many times,
Like it's so you know, one hundred times type of thing,
and that's that's silly. So we're going to iterate until
we see, like what what actually results in an effective
and purchase experience. You know, past a certain point, you're
really just you know, being a dead horse.
Speaker 2: It's kind of pointless.
Speaker 1: I guess generally when any product breaks with especially AI,
but really almost any product or any kind of new thing,
if it's it's going to trend on X almost immediately,
so you can kind of tell if a product is
going to be successful actually because it's going to trend
organically on X in a big way.
Speaker 2: And I guess we would also see it with.
Speaker 1: Rock, you know, when people ask Rock questions, you can
see that frequency spike when there's something new and interesting.
We do think that immersive video ad advertising is important
and that that will be a significant focus in the future.
So if you're in immersive video, you should see a
massive compelling video ads. And then the same thing is
true with when when people do search with l MS,
at least with GROC, which we should show people products
that they would find interesting. If they're a false famous
manner in our system, we will that that ad will
be struck from the system.
Speaker 2: That it would it would it would work well.
Speaker 1: I don't know about nuances, but if if, if misleading
claims are made, then the then that ad will be
struck from the system and that advertiser will be banned
from X. We actually have GROC assessed the scamminess of
an AD, so there are far fewer scamming ads that
actually come through because Grock's pretty smart and GROK gets
smarter over time.
Speaker 2: So if an AD is misleading.
Speaker 1: You know, GROC I think is going to figure that out, yes, right,
telling ads without being misleading. There have been a lot
of improvements behind the scenes, So admittedly the interface is suboptimal,
but in terms of matching, there's been there have been
significant improvements behind the scenes, and we have seen advertiseacy,
you know, double or triple the conversion rates that they
so we're seeing even a few months ago. So it
may not on the surface appear like there's a lot happening,
but there's certainly a lot happening beneath the surface. I
don't believe in disruption for the sake of disruption, and
I mean, frankly, for the X system.
Speaker 2: We're just trying to get.
Speaker 1: To where we were at a level of capability that
is kind of industry standard. The sort of the old
Twitter advertising system basically had no targeting, so it was
just kind of random spam, and we're trying to get
to and we're making progress rapidly to the point where
we're showing our users products and services that they actually
want to buy. So we're coming from a kind of
a tough position but making rapid progress to showing users
products and services that they actually want to buy the
acid test, being that you're on the X system. If
you're on the X system for several hours a week,
you should have probably bought something or certainly seen as
for lots of things that you'd want to buy. We're
trying not to inject editorial into advertising apart from the
fact that we want ads to be esthetically pleasing, to
be beautiful, and not to be shrill in any way,
and we want them to be accurate. That's that's and
and matched to a user's needs.
Speaker 2: That's it.
Speaker 1: So Yeah, to be to be clear, like, we're not
saying that an AD needs to be winning most Beautiful
out of the Year award, but but that it just
can't be extremely ugly and strident.
Speaker 2: That's all.
Speaker 1: So if if Grock determines that an AD is you know,
just shrolls strident, ugly and discordant, it will receive a penalty.
But it really an okay AD will not receive a penalty.
It doesn't need to be winning any you know, major
aesthetic contest. It just needs to not be aggravating. Yeah, absolutely,
Grock will do this dynamically. So this should just happen automatically.
Just put the ad in and it should react automatically
to any anything that's happening in real time.
Speaker 2: So and with that, yeah, thank you for tuning in.
We're working hard to make x.
Speaker 1: A a great platform for advertising, ultimately the best advertising,
the best platform for apazing and appreciate your support.
Speaker 2: Thank you,