Since Elon Musk took over Twitter last October, the company hasn’t fared very well. Dissatisfied with the company’s policy, many companies, including large industry giants, have stopped advertising on the platform, cutting a deep hole in Twitter’s finances. This is also proven by the data – Twitter’s revenue from advertisements has decreased by 59% compared to last year, if you look at the period from April 1 to the beginning of May this year.
The head of “Twitter”, Elon Musk, previously said that the company hopes to earn three billion US dollars this year. These expectations are much more down-to-earth compared to 2021, when the company’s total revenue reached $5.1 billion. The main reason for this negative trend is the decline in advertising revenue. All this has also had negative consequences for the value of Twitter itself, which is estimated at 15 billion dollars. This is almost three times less than the amount for which Musk bought the company.
Musk also announced last week that activity in the advertising segment has halved in one year. He mainly blames it on advertisers in North America and Europe, who put “extreme pressure” on the company. Musk also added that it is advertisers who are trying to bring Twitter to bankruptcy. Musk has talked about the possibility of bankruptcy before, and in fact, for some months, the existence of the company hung by a thread.
From the advertisers’ point of view, the main reasons why they stopped cooperation or reduced their activity on the Twitter platform are related to Twitter’s policy and Elon Musk’s actions. Since Musk has been at the helm of Twitter, the platform has seen a significant increase in hate speech, pornographic content, advertisements promoting marijuana use and online gambling. Advertisers have also been angered by Musk’s restoration of access to certain Twitter accounts, such as Donald Trump’s. As a result of all this, many car brands also stopped cooperation with Twitter, while companies such as Apple, Amazon, and Disney reduced their ad spending.
2023-06-07 09:00:00
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