Twitter Saw Ad Spending Fall by Over 70 Percent in December After Elon Musk Takeover 376957 Data Shows

Fourteen of Twitter's top 30 rs stopped all ads on the platform after Elon Musk took charge on October 27, according to Pathmatics estimates. 462i4b

By Reuters | Updated: 25 January 2023 11:02 IST

Twitter Saw Ad Spending Fall by Over 70 Percent in December After Elon Musk Takeover, Data Shows

Photo Credit: Twitter 4m6b2k

In a November event on Twitter Spaces, Musk addressed the issue of companies pausing ads

Highlights

Twitter is moving to reverse the r exodus
Ad spending on Twitter in November fell 55 percent from last year
Most of the companies had stopped spending in November

ment

Advertising spend on Twitter dropped by 71 percent in December, data from an advertising research firm showed, as top rs slashed their spending on the social-media platform after Elon Musk's takeover.

The recent data by Standard Media Index (SMI) comes as Twitter is moving to reverse the r exodus. It has introduced a slew of initiatives to win back rs, offering some free ads, lifting a ban on political advertising and allowing companies greater control over the positioning of their ads.

According to the SMI data, ad spending on Twitter in November fell 55 percent from last year despite these months traditionally being a time of higher ad spending as brands promote their products during the holiday season.

No ments for Higher Priced Twitter Subscription, Says Elon Musk

Twitter did not immediately respond to a Reuters request for comment.

Most of the companies had stopped spending in November, estimates by another research firm Pathmatics showed, the same month that Musk restored suspended s and released a paid verification that resulted in scammers impersonating corporations.

Fourteen of the top 30 rs on Twitter stopped all advertising on the platform after Musk took charge on October 27, according to the Pathmatics estimates.

Why Elon Musk's Twitter Is Being Sued by Britain's Crown Estate

In a November event on Twitter Spaces, Musk addressed the issue of companies pausing ads and said that he understands if rs "want to give it a minute."

Around the same time, Musk had also blamed activist groups for pressuring rs to pull ads on social media platform. Ad sales for about 90 percent of Twitter's revenue.

Twitter's fourth-quarter revenue fell about 35 percent year over year due to a slump in advertising, technology-focused publication the Information reported, citing details shared by a top Twitter ad executive at a staff meeting last week.

© Thomson Reuters 2023

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