The new Twitter chief has really been at a standstill as he has really tried everything to turn the platform into a place where users get appreciated and also feel welcomed.
But thanks to a recent analysis from CNN based on Pathmatics insights, data has gone on to prove how the company’s top 1000 advertisers had completely stopped spending on the app since January of this year.
That accounts for nearly 50% of advertisers, which happens to be the firm’s major source of revenue. The report provided by CNN has also gone on to showcase how the trend is in line with Elon Musk taking charge.
This includes some big names that pulled out major dollar investments such as Coca-Cola, Merck, Unilever, Jeep, and Wells Fargo. The data goes back to January 25 and so it’s very recent and alarming, experts claim.
Some are going on to speak about how their spending on the app may have come to an end with time but that does not mean they’re completely cutting out ties. For them, the decision now is to use the app as a platform to better engage with their respective clients. But others are yet to comment on the news.
This mega pullback of advertisers means we are witnessing the company’s ad revenue falling by nearly 60%. What it used to make in the past was nearly 127 million and now, figures barely touch the $48 million mark.
Moreover, such data also goes on to demonstrate another interesting finding. This sharp decline that we’re witnessing over time is linked to an advertising business that’s worth $4.5 billion for the firm.
Just as the Tesla and SpaceX CEO began his transition of entering the company and grabbing a hold of its leadership with some mighty changes across the board, many advertisers felt unsure of what was to come. They started to express major concerns about how safe and stable this app really was.
But as expected, it wasn’t long before revenue began to drop.
While we agree that the advertising business for Twitter was never at the same level as that of other arch-rivals like Google and Meta’s Facebook, it did account for a huge chunk of its revenue.
Now, Musk is trying really hard to figure out the loopholes and fill in the gaps. The timing is not great because we’re looking at Twitter still trying to figure out how to fulfill some major interest payments that account for the debt Musk attained to purchase the firm in the first place.
Remember, $44 billion is not a small value, it’s a huge amount. And seeing the app scramble without a media relations team means the situation is already hard to deal with.
At the moment, Musk is doing everything he can to win back the trust of investors and advertisers. And it’s not exactly going in his favor but we give him full credit for trying.
Just a few days back, Musk added how Twitter is trending to break even. And that’s just a month after he predicted it would run into bankruptcy.
Read next: Twitter Limiting Free Access To Its Data Spells Trouble For Researchers
by Dr. Hura Anwar via Digital Information World
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