Pages

Twitter’s Advertising Revenue Takes Massive Hit As 500 Top Advertisers Pull Out After Musk’s Takeover

It’s no surprise that Twitter’s current scenario spells trouble.

The company’s future does not appear to be too bright after news broke out about 500 leading advertisers distancing themselves from ad spending across the platform. This is ever since billionaire Elon Musk took charge.

The revenue is down by around 40% and that’s a major crisis because stats are pointing toward a very gloomy picture. When you compare the figures from last year, the company's senior manager says the employees were given a reality check regarding the figures of daily revenue.

This news was first unveiled by the likes of The Information. It comes at a time when such reports of around 500 of the app’s top advertisers claim to have put an end to spending ever since CEO and Twitter Chief Elon Musk took charge.

The constant decline of Twitter’s advertising business means it’s just so much harder for the firm to break even this year. That’s contrary to what Elon Musk mentioned recently as he hoped this year would be the one for massive gains.

Now the real question on so many people’s minds is why exactly the advertisers are pulling out.

A lot of them were seen expressing extreme disapproval of Elon Musk’s approach to moderating content online. This entails reinstating accounts that were once banned in the past and also dismissing the firm’s leading top executives that are responsible for looking over the likes of hate speech.

Musk was seen getting rid of a lot of the firm’s sales team. This includes several individuals who happened to be in charge of the firm’s major advertisers and nearly 50 engineers as scientists that were working hard to better the app’s advertising product.

So which advertisers are the ones that are actually taking a step back? The answer is that there is not just one. So many ad-holding firms have gone about recommending how clients need to put a temporary stop to advertising across the platform as they wish to see what Elon Musk would be doing next.

There are clients of the likes of GroupM which is the world’s leading ad-purchasing organization on this platform. They’ve really reduced ad spending ever since the billionaire took charge, adding how the firm is really high at risk.

How much of this spells trouble for Twitter’s users? Well, there are definitely some major issues linked to the app’s advertising business that may lead to Elon Musk taking on huge cost-cutting measures that follow his past reduction of around 75% of the company’s 7500-member workforce. This adds to how such closure would be linked to one of the data centers.

The app’s service quality would go down dramatically and may result in so much more frequent outages or fewer new features being provided to those that aren’t spending. Hence, it’s a gloomy picture altogether and the company needs to act fast if it wishes to save the platform before a point of no return.


Read next: Twitter Auctions Off Bird Logo Statue for $100,000

No comments: