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Ad spending on Twitter falls by over 70pc in December: data

Reuters by Reuters
January 25, 2023

Advertising spend on Twitter Inc dropped by 71% in December, data from an advertising research firm showed, as top advertisers slashed their spending on the social media platform after Elon Musk s takeover.

The recent data from the Standard Media Index comes (SMI) as Twitter is moving to reverse the advertiser exodus. It has introduced a slew of initiatives to win back advertisers, offering some free ads, lifting a ban on political advertising and allowing companies greater control over the positioning of their ads.

According to the SMI data, ad spending on Twitter in November fell 55% from last year despite these months traditionally being a time of higher ad spending as brands promote their products during the holiday season.

Twitter did not immediately respond to a Reuters request for comment.

Most of the companies had stopped spending in November, estimates by another research firm Pathmatics showed, the same month that Musk restored suspended accounts and released a paid account verification that resulted in scammers impersonating corporations.

Read more: Amazon deepens healthcare push with $5 monthly subscription

Fourteen of the top 30 advertisers on Twitter stopped all advertising on the platform after Musk took charge on October 27, according to the Pathmatics estimates.

In a November event on Twitter Spaces, Musk addressed the issue of companies pausing ads and said that he understands if advertisers “want to give it a minute.”

Around the same time, Musk had also blamed activist groups for pressuring advertisers to pull ads on social media platform. Ad sales account for about 90% of Twitter s revenue.

Twitter s fourth-quarter revenue fell about 35% year over year due to a slump in advertising, technology-focused publication the Information reported, citing details shared by a top Twitter ad executive at a staff meeting last week.

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