Social Media

Twitter’s Revenue Down 40% As 500 Top Advertisers Pull Out

Twitter is facing a crisis in its core advertising business, as a senior manager at the company recently told employees that daily revenue was down 40% compared to a year ago.

This news, first reported before the informationIt comes on the heels of reports that more than 500 of Twitter’s top advertisers have stopped spending on the platform since CEO Elon Musk took over the platform.

The continued decline in Twitter Ads activity makes it difficult for the company to break even in 2023, as Musk previously did. advertiser would.

Why do advertisers quit?

Some major advertisers have expressed disagreement with Musk’s approach to moderating content, including reinstating previously banned accounts and firing key company executives responsible for curbing hate speech.

Musk also terminated most of Twitter’s sales force, including several in charge of the company’s major advertisers and about 50 engineers and data scientists working to improve Twitter’s advertising product.

Which advertisers are opting out?

Notably, the advertising holding companies Omnicom and Interpublic Group have recommended That their customers pause all advertising on Twitter while they wait to see what Musk does next.

Clients of GroupM, the world’s foremost ad-buying firm, have also cut back on their spending since Musk became CEO, saying the company has become High risk.

What does this mean for Twitter users?

Issues with Twitter’s advertising business could lead Musk to take further cost-cutting measures after his previous cut of 75% of Twitter’s 7,500 employees and the closure of one of its data centers.

This could affect Twitter’s quality of service, which could lead to more frequent outages or a lack of new features for non-paying users.

With the limited resources available to Twitter to develop new tools, it wouldn’t be surprising to see new offerings locked behind Twitter’s unpaid blue wall.

Also within the realm of possibility, Twitter is charging for previously free features, similar to how Musk monetizes verification tags.

This is speculation, of course, since Twitter hasn’t made any public statements regarding the decline in its advertising activity.

It remains to be seen what Musk will do to diversify revenue.

With the company’s future at stake, the actions of Musk and Twitter will be closely watched by the industry and its investors.


Featured image: Gearstd/Shutterstock

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