After Elon Musk’s takeover, Twitter changed from head to toe. The new CEO fired more than half of the stuff and also ordered his team to rewrite the code. Well, we guess you know all these stories and what a buzz they made on the net. Not long ago, Pathmatics reported that more than half of the top 1,000 advertisers on Twitter (September,2022) were no longer on the platform in the first few weeks of January. Their living has reached a serious level.
Top Advertisers Leaving Elon Musk Alone With His Debts
625 out of Twitter’s top 1,000 advertisers, such as Coca-Cola, Jeep, Wells Fargo, and Merck, had stopped running ads as of January. For instance, Wells Fargo “suspended paid advertising on Twitter” but continues to use it as a social channel.
Of course, such a move has had a great impact on Twitter’s advertising revenue. It dropped by more than 60% from October last year to January 25 this year for the month. As for numbers, Twitter earned $48 million compared to $127 million.
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What’s odd, advertisers have concerns touching the platform’s security and stability after Musk’s takeover. But in fact, the system has had serious problems even before that. Peiter Zatko, Twitter’s former security head, accused Twitter of not providing proper info to FTC sealed earlier.
While Twitter’s advertising business has always been much smaller than that of rivals Facebook and Google, it still generates the biggest part of its revenue. Thus, Elon Musk will face serious problems because he pays interest on the debt he took to acquire Twitter for $44 billion.
As for other top advertisers who are still running ads, they have reduced their ad spend on the platform a lot. HBO, for instance, was Twitter’s top advertiser in September, with $12 million in ad spend for the month, spent only $54,000 in January.