This past week, we saw Twitter chief Elon Musk sit down for an exclusive interview with the BBC where he detailed more about the current situation of the platform.
While admitting the huge losses that Twitter incurred due to advertisers pausing and taking a step back from trusting the app after he purchased the company, the tech billionaire was optimistic.
He said that things were going back to normal and he was happy to see almost all of the company’s advertisers come back and that meant more revenue for the firm. But new data is proving otherwise.
The app’s ad revenue recovery is still very slow and it’s the complete opposite of the picture painted by Elon Musk. Statistics from a leading research firm called Sensor Tower as well as Insider Intelligence provide several statements as evidence of how reluctant advertisers happened to be in terms of returning.
The ad spending on this platform happened to be down by nearly 20% and then we saw Twitter’s leading advertisers spending a total of $83 billion in the past two months. This was a decline of nearly $102 million during the initial period of 2022. Meanwhile, stats from Insider Intelligence also proved how the forecast for the app’s global advertising revenue for 2023 would be 37% less than that predicted. So that’s just $2.9 billion which is a clear 28% decline from the past year when revenue stood at $4.1 billion.
Before we saw the world’s second richest person take charge of the popular microblogging website in the latter part of October, so many top brands including Mondalex International and Coca-Cola appeared to be a part of the app’s leading advertisers that made the top 10 list.
But these firms aren’t listed in the top 50 for the past two months as per stats from Sensor Tower. And then we saw statements coming out from Mondalez International about how it was so worried about its advertisements being aligned against wrong texts such as those related to hate speech.
Other leading advertisers like Volkswagen confirmed that they weren’t keen on resuming advertisements on the app. And then a few others like Meta and Kellog did not even feel the need to respond to comment requests regarding their spending on the app.
Next, Twitter’s advertising portal saw a massive 18% drop in terms of March’s web traffic results when compared to the past year as shown by Similarweb. The company went on to explain how Twitter’s advertising business is going down the drain and the subscription product of Twitter Blue seems to be the app’s only hope but that too isn’t overly successful.
Then we have the popular app facing some more challenges in the form of businesses competing for marketing budgets during a period when so many firms are cutting out ad spending thanks to the current economic situation around the globe.
Today, experts feel advertisers seem to be putting out more interest in apps that really do give them the maximal return on their initial investments, and clearly, Twitter just isn’t one that can, especially after Musk is in charge.
But why does everyone seem to be caring so much? Well, Twitter still has millions of people on the app and it’s obviously very popular for ad campaigns and getting the right target audience engagement.
Still, firms are so hesitant and are clearly weighing out the leading risks associated with it thanks to a great many controversies that continue to be attached to Musk’s name.
Read next: Twitter Blue Allows Users To Express Themselves Better With Enhanced Character Limits And Text Formatting Options
While admitting the huge losses that Twitter incurred due to advertisers pausing and taking a step back from trusting the app after he purchased the company, the tech billionaire was optimistic.
He said that things were going back to normal and he was happy to see almost all of the company’s advertisers come back and that meant more revenue for the firm. But new data is proving otherwise.
The app’s ad revenue recovery is still very slow and it’s the complete opposite of the picture painted by Elon Musk. Statistics from a leading research firm called Sensor Tower as well as Insider Intelligence provide several statements as evidence of how reluctant advertisers happened to be in terms of returning.
The ad spending on this platform happened to be down by nearly 20% and then we saw Twitter’s leading advertisers spending a total of $83 billion in the past two months. This was a decline of nearly $102 million during the initial period of 2022. Meanwhile, stats from Insider Intelligence also proved how the forecast for the app’s global advertising revenue for 2023 would be 37% less than that predicted. So that’s just $2.9 billion which is a clear 28% decline from the past year when revenue stood at $4.1 billion.
Before we saw the world’s second richest person take charge of the popular microblogging website in the latter part of October, so many top brands including Mondalex International and Coca-Cola appeared to be a part of the app’s leading advertisers that made the top 10 list.
But these firms aren’t listed in the top 50 for the past two months as per stats from Sensor Tower. And then we saw statements coming out from Mondalez International about how it was so worried about its advertisements being aligned against wrong texts such as those related to hate speech.
Other leading advertisers like Volkswagen confirmed that they weren’t keen on resuming advertisements on the app. And then a few others like Meta and Kellog did not even feel the need to respond to comment requests regarding their spending on the app.
Next, Twitter’s advertising portal saw a massive 18% drop in terms of March’s web traffic results when compared to the past year as shown by Similarweb. The company went on to explain how Twitter’s advertising business is going down the drain and the subscription product of Twitter Blue seems to be the app’s only hope but that too isn’t overly successful.
Then we have the popular app facing some more challenges in the form of businesses competing for marketing budgets during a period when so many firms are cutting out ad spending thanks to the current economic situation around the globe.
Today, experts feel advertisers seem to be putting out more interest in apps that really do give them the maximal return on their initial investments, and clearly, Twitter just isn’t one that can, especially after Musk is in charge.
But why does everyone seem to be caring so much? Well, Twitter still has millions of people on the app and it’s obviously very popular for ad campaigns and getting the right target audience engagement.
Still, firms are so hesitant and are clearly weighing out the leading risks associated with it thanks to a great many controversies that continue to be attached to Musk’s name.
Read next: Twitter Blue Allows Users To Express Themselves Better With Enhanced Character Limits And Text Formatting Options
