According to statistics from an advertising research agency, advertising spend on Twitter Inc fell by 71% in December, as prominent advertisers reduced their expenditure on the social media site following Elon Musk's takeover. The latest Standard Media Index (SMI) data comes as Twitter attempts to reverse the advertiser exodus. It has launched a host of steps to woo back advertisers, including offering certain free commercials, easing a restriction on political advertising, and giving businesses more control over the placement of their ads. According to SMI statistics, ad expenditure on Twitter decreased 55% from the previous year in November, despite the fact that these months are generally times of increased ad spending as firms market their products over the Christmas season. Twitter did not immediately reply to Reuters' request for comment. According to Pathmatics estimations, the majority of the organisations ceased spending in November, the same month Musk reinstated suspended accounts and issued a paid account verification that resulted in fraudsters impersonating corporations. According to Pathmatics estimates, fourteen of the top 30 advertisers on Twitter withdrew all advertising on the platform once Musk took over on October 27. Musk addressed the problem of firms suspending advertisement during a November event on Twitter Spaces, saying that he understood if advertisers "want to give it a minute." At the same time, Musk criticised activist organisations for pressing companies to drop advertisements from the social media network. Ad sales generate around 90% of Twitter's revenue. Twitter's fourth-quarter income decreased 35% year on year owing to a drop in advertising, according to the Information, citing figures presented by a top Twitter ad executive during a staff meeting last week.
According to statistics from an advertising research agency, advertising spend on Twitter Inc fell by 71% in December, as prominent advertisers reduced their expenditure on the social media site following Elon Musk’s takeover.
The latest Standard Media Index (SMI) data comes as Twitter attempts to reverse the advertiser exodus. It has launched a host of steps to woo back advertisers, including offering certain free commercials, easing a restriction on political advertising, and giving businesses more control over the placement of their ads.
According to SMI statistics, ad expenditure on Twitter decreased 55% from the previous year in November, despite the fact that these months are generally times of increased ad spending as firms market their products over the Christmas season.
Twitter did not immediately reply to Reuters’ request for comment.
According to Pathmatics estimations, the majority of the organisations ceased spending in November, the same month Musk reinstated suspended accounts and issued a paid account verification that resulted in fraudsters impersonating corporations.
According to Pathmatics estimates, fourteen of the top 30 advertisers on Twitter withdrew all advertising on the platform once Musk took over on October 27.
Musk addressed the problem of firms suspending advertisement during a November event on Twitter Spaces, saying that he understood if advertisers “want to give it a minute.”
At the same time, Musk criticised activist organisations for pressing companies to drop advertisements from the social media network. Ad sales generate around 90% of Twitter’s revenue.
Twitter’s fourth-quarter income decreased 35% year on year owing to a drop in advertising, according to the Information, citing figures presented by a top Twitter ad executive during a staff meeting last week.
