Major Challenges Lay Ahead For Twitter’s New CEO As App’s Advertising Revenue Declines 59% YoY

Twitter has a new CEO and her name is Linda Yaccarino. She took charge today amid striking reports of the app’s advertising revenue falling by a staggering 59%.

The news was confirmed through an internal presentation that was taken on by The New York Times that spoke in detail about the matter.

Despite Musk’s discussion and great positivity about the company’s advertising department and how strongly he felt about all the advertisers coming back, that’s far from the case. The tech billionaire has gone about predicting a lot of profitability regarding the platform and how the current situation still remains very uncertain.

There is something over here that just is not adding up properly. Why are so many advertisers fleeing away at this alarming rate?

Remember, a rise in hate speech and graphic-themed posts continue to swarm the app, and that entails a rise in ads for things like online gambling and products including marijuana that are causing significant concern.

The firm’s advertising revenue in the US is also dropping by nearly 56% every week and that’s in comparison to years of the past as per internal documents. Meanwhile, Twitter’s advertising sector is one of the leading means through which the app attains success. And not having great stats on that end could mean more trouble.

So many brands were not happy about Elon Musk taking charge. For instance, GM and Volkswagen ended up suspending advertising investments in the app. Let’s not forget how Musk was projecting the app’s revenue for this year with a prediction of reaching the $3 billion mark. It’s a great drop from when the firm began where the figure stood at $5 billion.

Many leading firms in the tech world including Amazon and Apple ended up reducing their spending when compared to the stats of the previous year. In the same way, it’s shocking to see how banner ads carrying high value were being bought by top brands for the sake of marketing and it continues to be unsold.

For so long, we’ve seen the firm be called out for its links with top advertisers such as Disney. It even once ended up providing gold ticks to those paying advertisers that had accounts that were not affiliated. And that account further went on to add offensive content and that resulted in Disney demanding explanations from the app to stop errors like this from taking place in the future.

Read next: Researchers Discover Piles of Explicit Images Displaying Child Abuse On Twitter Despite Elon Musk Vowing To Remove Such Content
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