Tough Times For Twitter As New Study Proves Ad Spending Dropped By 71% In December

A new study has highlighted alarming statistics for Twitter Inc. and its respective decline in ad spending.

Figures proved how ad spending witnessed a decline of nearly 71%. This news comes to us thanks to an advertising research company that proved how some of the leading advertisers in the industry just aren’t interested in the company.

This is why they slashed the spending by such a huge amount after Elon Musk chose to take over the organization.

Standard Media Index recently published a report showing how Twitter is really trying hard to reverse this outcome, a term that has been dubbed ‘advertiser exodus’.

The company is trying to think outside the box on how it can change the perception that top advertisers have about the platform and hence regain trust for better ad spending.

This entails the likes of enhanced incentives which entails the offering of free ads while lifting up the ban on things such as political advertising. There are a lot of firms gaining more control regarding ad positioning and Twitter wants to stand in the same league as them. After all, who wants to miss out on some great revenue right?

As per the data mentioned in this study, ad spending on the platform fell by a staggering 55% in the likes of November of last year. It’s alarming because this is the time witnessed for the likes of bigger ad spending for brands that choose to market products during the profitable holiday/festive season.

For now, Twitter is yet to send out a response to comment requests made by leading media outlet Reuters.

Most firms stopped entertaining Twitter with ads in November last year whereas estimates from another firm like Pathmatics highlighted another interesting report.

This happened to be the same month that we witnessed Elon Musk suspend the account and even release paid account verifications. This led to scammers impersonating different firms.

Around 14 out of the 30 leading advertisers on Elon Musk’s firm put an end to advertising after Musk took charge in October last year as per reports shown by Pathmatics.

One event in November that was held across Twitter Spaces showed the billionaire addressing matters linked to firms putting pauses on ads. But Musk failed to take it too personally and mentioned how he did try to understand where such advertisers were coming from and hence may require a minute to take in the big change.

During that same period, Elon Musk started to blame activist firms for adding more pressure on advertisers that were already skeptical about ad spending on Twitter.

He said they were the main reason behind such advertisers pulling out ads across social media platforms. Remember, ad sales account for 90% of the company’s revenue. So as you can imagine, it’s a big deal.

Meanwhile, the firm’s revenue in the fourth quarter fell by a staggering 35% YoY thanks to a slump in the world of advertising. These details were made public by one of the firm’s leading ad executives during a staff meeting that took place last week.

Read next: Twitter Starts a Trial of Ads Targeting Only for In-App Search
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