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. According to a new study, December saw a 71% drop in spending on Twitter ads year-over-year.
Twitter has made it difficult to get accurate financial statistics. The company is now a private corporation and cannot publish financial statements. 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. These incentives include additional impressions, lifting the ban against political ads and more control over the placement ads.
According to SMI data, advertisers spent 55% less on Twitter in November, even though this is a peak season for the advertising industry. Pathmatics researchers found that 14 of the 30 biggest advertisers on Twitter dropped their core services after Twitter was brought under Elon Musk’s control. Last week, a Twitter executive announced a 35% decrease in fourth-quarter revenue. This was according to employees at the meeting. Twitter earned 40% less per day in mid-January than it did a year ago.