Twitter continues to be in deep trouble: advertisers flee, revenues fall by 40%.
More than 500 major advertisers have suspended investments in Twitter. Daily revenue from the advertising business plummeted by 40%.
Twitter’s advertising business continues to be in a deep slump, with its daily revenue reportedly down 40% from last year. According to The Information, more than 500 of the company’s top advertisers have suspended investments in the platform following last October’s takeover by Elon Musk.
More than 500 major advertisers have suspended investments in Twitter.
Even if Musk plans to diversify Twitter’s business model, making advertising a less critical item to its survival, the company likely won’t break even this year. Twitter generated $1.2 billion in Q1 2022, while 2023 started 40% underperforming. We are talking about an average of 8 million dollars per day and about 720 million per quarter.
Twitter should be able to bring the turnover to 3 billion dollars, even considering that it will have to pay 1.5 billion dollars only in annual interest on the debt that Musk has obtained to complete the acquisition.
The collapse of the advertising business will likely force another draconian cost-cutting. Twitter has already laid off over 75% of its employees and there is very little left to clean up.
According to Axios, some large advertisers are dissatisfied with Musk’s approach to content moderation. The reasons for the discontent include the rehabilitation of Donald Trump and the dismissal of the executives in charge of curbing hate speech.
However, Twitter can find solace in its ability to attract and retain media partners. According to Axios, the platform still has agreements with more than three dozen media companies, news organizations (including the Wall Street Journal, Reuters, Bloomberg, Forbes, Conde Nast and USA Today) and sports leagues (including NFL, NBA , NHL, MLB, NASCAR and PGA Tour).