24 January (Reuters) – Advertising spending at Twitter Inc fell 71% in December, data from an advertising research firm showed, as top advertisers followed Elon Musk’s takeover social they have reduced their expenses on the media platform.
The latest data from the Standard Media Index (SMI) comes as Twitter moves to restore advertiser leverage. It will give back to advertisers, some free ads offer make, political has introduced a number of initiatives to lift the ad ban and give companies more control over the placement of their ads.
According to SMI data, advertising spending on Twitter in November decreased by 55% compared to last year.
Twitter did not immediately respond to Reuters’ request for comment.
Another research firm, Pathmatics, estimated that most of the companies had suspended spending in November, the same month Musk reinstated suspended accounts and released paid account verification that allowed fraudsters to impersonate corporations.
Since Musk took office on Oct. 27, 14 of the top 30 advertisers on Twitter have stopped all ads on the platform, according to Pathmatics estimates.
At a Twitter Spaces event in November, Musk addressed the issue of companies stopping ads, saying he understands advertisers “want to give it a minute.”
Around the same time, Musk social also accused activist groups of pressuring advertisers to pull ads on the media platform. Advertising sales account for about 90% of Twitter’s revenue.
Twitter’s fourth-quarter revenue fell nearly 35% year over year due to a decline in tech-based advertising, according to details shared by Twitter’s top advertising executive last week.
Reporting by Akriti Sharma in Bengaluru and Sheila Dang in Dallas
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Source – reuters