Ad Spending on Twitter Falls by Over 70%

As per some data from an advertising research company, advertising spending on Twitter Corporation declined by 71 percent in December, since top marketers cut their investment in the social media network following Elon Musk’s buyout.

The latest Standard Media Index (SMI) figures come as Twitter attempts to overturn the advertiser exodus. It has launched several measures to woo back advertisers, including providing a few free advertising, removing a restriction on political ads, and giving businesses more control over the placement of their ads.

According to SMI data, advertising spending on Twitter dropped 55 percent from the previous year in November, irrespective of the fact that these months are traditionally times of relatively high advertising expenditure since brands advertise their goods during the holiday rush.

Twitter did not respond right away to a request for a reply from Reuters.

According to a research firm, Pathmatics estimates, most of the businesses stopped investing in November, the very same month Musk recovered eliminated accounts as well as launched a paid account identification that ultimately led to fraudsters imitating companies.

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According to Pathmatics, soft drink brand Coca-Cola stopped investing in Twitter ads in the October middle of 2022 after investing an estimated 1.1 million USD previously in the month, whilst also tv network HBO’s investment dropped from 1.1 million USD in November to 38,000 USD in December.

Other consumer brands, including Nestle as well as Heinz ketchup producer Kraft Heinz, have also suspended all advertising.

According to Pathmatics estimates, 14 of the best 30 advertising companies on Twitter ceased all marketing on the company after Musk took over on Oct. 27.

Musk discussed the problem of businesses pausing advertisements in an event in November on Twitter Spaces, saying that he knows if advertising companies “want to give it a minute.”

At the same time, Musk accused activist communities of forcing advertisers to pull advertisements from the social media platform. Advertising revenue generates roughly 90 percent of Twitter’s earnings.

Twitter’s fourth-quarter sales dropped 35 percent year by year due to a drop in marketing, according to the Info, referencing detailed knowledge by a leading Twitter ad executive at a team meeting last week.