The advertising spending on Twitter dropped over 70 per cent in December, as the micro-blogging platform is struggling to overcome a financial crunch. Recent data from an advertising research firm shows that the top advertisers have slashed their ad spending on the platform after the chaotic takeover by Elon Musk.
The data by Standard Media India shows that just a month after Musk’s takeover, in November, ad spending fell 55 per cent despite the holiday season. Traditionally, it is a time of higher ad spending from brands. The data comes amid Twitter is doing its every bit to win back advertisers such as offering free ads, allowing political advertising, and giving companies better control over the positioning of their ads.
Pathmatics, another research firm found that most companies stopped ad spending in November. The firm’s data shows over ten of the top 30 advertisers on Twitter stopped advertising on the platform. The same month Musk decided to restore suspended accounts and also rolled out the paid account verification platform, which led to chaos on the platform as both legacy checkmarks and the new Twitter Blue subscriptions were active. Several accounts impersonated other accounts, both with the checkmark.
Musk’s takeover of the micro-blogging platform prompted concerns from advertisers as well as users after he slashed staff in mass layoffs and rolled back content moderation policies. According to a recent The Information report, Twitter’s fourth-quarter revenue fell about 35 per cent in 2022.