The “Internet forum for the exchange of ideas” is losing advertisers at an alarming rate. Since Elon Musk became the head of Twitter, the biggest companies are leaving one by one. It is the aftermath of the words of the new head of Twitter, who announced the “reconstruction” of the site. According to the Media Matters for America report, 50 of the top 100 gamers have stopped promoting on the platform.
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See also: Twitter takeover controversy. What is Elon Musk planning?
Advertisers are cutting back on Twitter spending. Companies don’t want to be associated with Musk
A report by a non-profit organization involved in media research and disinformation monitoring indicates that in 2020-2021, the largest companies spent almost $2 billion (about PLN 9 billion) on advertising on Twitter. From January 1 to November 21, 2022, the platform’s advertising revenues amounted to USD 750 million (about PLN 3.4 billion). Therefore, a significant downward trend can be observed.
Analysts point out that since Musk took over Twitter, the seven largest advertisers, responsible for the platform’s revenues of $118 million (about PLN 523 million), have significantly reduced their advertising spending on Twitter. Most companies should quietly retire, gradually cutting their advertising budget on the platform. Some companies such as Chevrolet, Chipotle, Ford and Jeep have announced the suspension of Twitter advertising in an official statement.
The report indicates that global players are cautious about changes to the platform announced by Elon Musk. The companies also don’t want to be associated with some of the billionaire’s controversial statements.
Earlier this month, ad agencies ordered their biggest clients to stop spending on Twitter ads. That recommendation was issued by Omnicom Media agency, which has brands such as Apple, Mercedes-Benz and McDonald’s in its portfolio. Volkswagen, General Motors and General Mills have also completely withdrawn from advertising on the platform.
Musk is responding to a decline in advertising revenue. “They broke the deal”
Twitter boss Elon Musk recently chimed in on the matter. The billionaire stressed that businesses shouldn’t be afraid to advertise on the site.
We’re all working hard to make sure there’s no bad stuff next to the ad,” he said.
However, it seems that not everything is going according to Musk’s plan. Also contributing to Twitter’s decline in advertising revenue was the failed idea of introducing a “democratic” fee for a blue “check” next to a username. Previously, it confirmed that a certain account is the official profile of a specific company or person.
Since the introduction of the “buy” option of verification, there has been considerable turbulence in the stock market. Shareholders reacted to rumors of users posing as well-known companies. However, Musk’s stance on the matter hasn’t dispelled advertisers’ doubts.
A large group of political and social activists have announced that they will not starve us of ad revenue if we withdraw from this change. They broke the deal, Elon Musk said.
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