A new Bloomberg report says that Twitter advertisers are reluctant to invest money in the platform.
Twitter continues to go through a financial crisis from which it seems that it will not emerge soon and, according to the most recent Bloomberg report , this becomes more evident with the passing of days. According to what the agency indicates, the social network has experienced a significant decline in its advertising revenue since Elon Musk took over the company. A relevant part of the advertisers of the platform hesitate when investing money in it.
A few weeks before the tycoon acquired the blue bird social network, between September and October 2022, a group made up of the 10 companies that invested the most money in Twitter -among which HBO , Amazon, IBM and Coca-Cola stand out – they spent $71 million on advertising within the platform. However, according to the Sensor Tower firm cited in the report , the same companies only invested 7.6 million dollars in ads: 89% less than in the past.
Twitter ad revenue declines
Several marketing specialists have already suggested to various companies that they take as clients to promote alternative advertising campaigns that do not have to do with the social network. Of course, it is quite likely that this situation is not being ignored within the firm since, according to the US Securities and Exchange Commission , advertising generates almost 90% of Twitter ‘s profits , being the source of income which more money leaves the company.
Advertising on Twitter is mainly based on promoted tweets, accounts or trends that often sneak into the feed of users when they use the platform. According to what Sensor Tower explains , it would be precisely this that would be causing the disinterest of advertisers. It’s important to note that the report focuses on the top 10 advertisers and not the entire ad division of the social network.
What happened to Twitter and what can you do to save yourself?
The serious situation in which Twitter currently finds itself was recognized by Elon Musk himself at the end of 2022, when he reported a “massive decrease” in advertising revenue from the social network. This fact translated into a 50% drop in the company’s general profits since, due to the changes and the new mentality by which Twitter was being governed, companies such as Volkswagen, United Airlines and Mondelez limited their investment in advertising .
As we mentioned earlier, certain marketers have suggested to their clients not to use Twitter as an advertising platform for a while until the new management changes are in place. Bloomberg points out that one of the recurring fears for these experts was the increase in hate speech, which has already been addressed by the social network with a new tool to prevent ads from being displayed next to certain keywords and images.
With the dismissal of practically 50% of its staff, the increase in failures in its service and the uninterrupted increase in debts, Twitter continues to be at a critical moment. The TechCrunch portal indicates that, even with the new strategy of focusing on the Twitter Blue subscription service , the profits it leaves for the company in comparison with those of advertising are minuscule.