The advertiser flight has worsened on Twitter. Since the arrival of Elon Musk at the head of the company, many companies have distanced themselves from the platform. According to The Information, more than 500 companies no longer buy ads on the social network.
The site indicates that the company’s daily revenues are suffering the brunt of the management, to say the least criticized, of the new head of Twitter. On Monday, January 17, this performance indicator was 40% lower than last year on the same date, according to a person close to the case.
Income down since November
In November, this same indicator was already scaring a former Twitter official. Then revenue was down 15% for a year and 49% for ads in Europe, the Middle East and Africa. The situation was then considered “catastrophic”.
Elon Musk may have thanked advertisers for his early December return, but the bleeding continued. The arrival of the billionaire had adverse effects on the company’s reputation, particularly due to the decision-making of his new boss. It should be remembered that in the span of a month, a massive downsizing caused Twitter to lose half of its employees.
Faced with this new state of affairs, companies stopped communicating on the platform in November. Of Twitter’s top 100 advertisers, one in three had stopped buying ads.
Although the company’s economic system is based on advertising revenue (up to 90%), the transition to a new model is particularly difficult. Now, Elon Musk hopes to fill the coffers of the Twitter Blue subscription, which promises an automatic certification badge. Always with the aim of achieving profitability in the shortest possible time.
Source: BFM TV
