The social network Twitter generated up to 90% of its revenue from advertising on its pages in the year before last, but at the end of October 2022 the company fell under the control of Elon Musk, who scared off some advertisers with his inconsistent reforms. Their Twitter ad spend fell by 71% in December from a year earlier, according to a new study.
Getting accurate financial statistics from Twitter is now problematic because the company gained private company status in late October and is not required to publish financial statements. As explained ReutersResearch firm Standard Media Index has come out with new statements about Twitter’s ad revenue drop in December. Earlier it was reported that Twitter is willing to offer advertisers more favorable terms to attract them. Examples of such incentives include additional free impressions, the lifting of the ban on political advertising, and more control over ad placement.
Ad spend on Twitter fell 55% in November, according to the SMI, even though it’s typically peak season for the advertising industry. According to Pathmatics researchers, after Twitter transitioned under Elon Musk’s control, 14 of the top 30 advertisers on that social network went offline. At a meeting with Twitter officials last week, it was reported that an executive at the company announced a 35% drop in fourth-quarter revenue. In mid-January, Twitter was earning 40% less per day than a year earlier.