Twitter: Top Social Media Advertisers Cut Their Spending by 90%, According to Report

Twitter continues to experience a financial crisis from which it looks like it will take some time to recover and according to the latest report bloomberg, it becomes more obvious as time goes by. According to what the agency points out, the social network has experienced a significant decline in advertising revenue since Elon Musk took over the management of the company. A significant portion of the platform’s advertisers hesitate to invest in it.

In the weeks before the mogul acquired social networking site Blue Bird, between September and October 2022, the group of 10 companies that invested the most in Twitter – among which stand out HBO, Amazon, IBM and Coca-Cola- spent $71 million on advertising within the platform. However, according to the firm sensor tower The same companies spent just $7.6 million on advertising, 89% less than in the past, according to the report.

Twitter ad revenue is down

Several marketers have already proposed to the various companies they take as clients to promote alternative advertising campaigns that are not related to the social network. Of course, it is likely that this situation does not go unnoticed within the firm, since, according to US Securities and Exchange Commissionadvertising brings almost 90% of the profits Twitterbeing the way of income that leaves the most money for the company.

advertising in Twitter This is mainly based on promoted tweets, accounts, or trends that often make their way into users’ feeds when they use the platform. According to what you explain sensor tower, this is what would cause the disinterest of advertisers. It’s important to note that the report focuses on the top 10 advertisers, not the entire advertising arm of the social network.

What happened to Twitter and what can you do to save yourself?

The difficult situation he was in Twitter He has now been recognized as the same Elon Musk at the end of 2022, when he reported a “significant decline” in ad revenue on the social network. This fact led to a 50% drop in the company’s overall profits, because due to the changes and the new mentality that Twitter was driving, companies such as Volkswagen United Airlines And Mondelez They have limited their investment in advertising.

As we mentioned earlier, some marketers suggested to their customers not to use Twitter as a promotional platform for a while until new management changes are settled. bloomberg points out that one of the recurring concerns of these experts was the rise in hate speech, which the social network has already dealt with with a new tool that prevents ads from showing next to certain keywords and images.

With almost 50% of its work force laid off, an increase in refusals from its service, and a continuous increase in debt, Twitter He is still at a critical juncture. Portal TechCrunch indicates that even with a new strategy to focus on customer service Twitter Bluethe profit he leaves to the company is negligible compared to the advertising profit.

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