Twitter’s US ad revenue fell 59% year over year between April 1 and the first week of May. informed The New York Times refers to an internal company presentation. The document reveals that the social network’s US ad revenue regularly falls short of weekly forecasts, in some cases by as much as 30%. At the same time, according to Twitter boss Elon Musk (Elon Musk), the company’s advertising business is on the rise. “Almost all advertisers are back” and soon it could become profitable.
According to documents and testimonials from some current and former Twitter employees, this issue is unlikely to be resolved any time soon. According to the company’s internal forecast, its US ad revenue will fall by at least 56% weekly in June. This situation must be corrected by Linda Yaccarino, who took over as CEO on Monday.
At a Twitter Space event Monday, Musk said advertisers are serving in Europe and North America “extreme pressure” to the company leading to it “half display” disappeared. “They’re trying to bankrupt Twitter” – he said.
Advertising has long accounted for 90% of company revenue. Not all advertisers liked Musk’s policies, and several major ad agencies and brands, including General Motors and Volkswagen, have stopped advertising on the social platform. Musk said Twitter is expected to generate $3 billion in revenue in 2023, up from $5.1 billion in 2021 when the company went public.
Since Musk bought Twitter for $44 billion, its market value has fallen significantly. Last week, Twitter owner Fidelity said he valued the site at just $15 billion.
Dave Campanelli, Horizon Media’s chief investment officer, said he’s hoping for a change following Iaccarino’s arrival, as the agency struggled to keep in touch with Twitter following Musk’s acquisition last fall. “For a while we didn’t even know who to call to speak to us. – he said. — With the arrival of Linda, that could change a lot.”