More than half of Twitter’s top 1000 advertisers, including well-known brands like Jeep, Coca-Cola and Unilever, are no longer spending on the platform. This took a hit on the social media giant’s advertising revenue in January, according to experts.
The report by digital marketing analysis firm Pathmatics shows that monthly revenue generated by Twitter’s top 1000 advertisers plummeted from October to the end of January, from $127 million to $48 million or more than 60%.
Despite Elon Musk’s insistence that the platform remains stable, Twitter seems to be seeing a severe decline following Musk’s acquisition and unexpected policies, which include cutting staff and relaxing content moderation policies.
The remaining top advertisers have seen this as a sign to reduce spending on the platform, if not to pull back completely. According to the Pathmatics report, HBO’s spending decreased drastically from about $12 million in September to $54,000 in January.
As advertising was responsible for the largest amount of revenue for Twitter, Musk is now looking to bring back top advertisers with appealing deals. Most notably, the company offered advertisers a special “fire sale” deal during the Super Bowl.
Additionally, Twitter is offering clients premium insight by partnering with a third-party firm dedicated to brand safety, which can show clients if their ads appear alongside inappropriate content on the platform.
However, advertising revenue is yet to return to normal. Certain advertisers have noted that employees they have previously closely worked with were let go during mass layoffs, resulting in confusion and negativity from clients.
Elon Musk insists that while the previous months have been challenging, Twitter is finally seeing financial stability.
Last 3 months were extremely tough, as had to save Twitter from bankruptcy, while fulfilling essential Tesla & SpaceX duties. Wouldn’t wish that pain on anyone.— Elon Musk (@elonmusk) February 5, 2023
Twitter still has challenges, but is now trending to breakeven if we keep at it. Public support is much appreciated!