In the year prior, Twitter earned up to 90% of its revenue from advertising on its pages. However, Elon Musk took control of the company at the end October 2022. His inconsistent reforms scared off some advertisers. A new study shows that their spending on Twitter ads decreased 71% in December compared to the previous year.
Twitter’s financial statistics are difficult to obtain right now. Since October, the company has been a private company. Therefore, financial statements are not required. Reuters reported that Standard Media Index, a research company, released new statements regarding the decrease in Twitter’s advertising revenue in Dec. It was reported earlier that Twitter is willing to offer more favorable conditions to advertisers in order to draw them. You can get additional impressions for free, lift the ban on political ads, or more control over where ads are placed.
According to SMI, November saw a drop in advertising spending on Twitter by 55%, despite it being a high season for the industry. Pathmatics researchers have found that after Elon Musk took control of Twitter, 14 of the top 30 advertisers left the core services. Last week, a Twitter executive announced a 35% decrease in fourth-quarter revenue. This was according to employees at the meeting. Twitter’s daily earnings were 40% lower than last year in January.