According to statistics from an advertising research agency, advertising spending on Twitter Inc fell by 71% in December, as prominent advertisers cut their expenditure on the social-media network following Elon Musk’s takeover.
The latest Standard Media Index (SMI) data comes as Twitter attempts to reverse the advertiser exodus. It has launched a host of steps to woo back advertisers, including offering certain free commercials, easing a restriction on political advertising, and giving businesses more control over the placement of their adverts.
According to SMI data, ad expenditure on Twitter decreased 55% from the previous year in November, despite the fact that these months are generally times of higher ad spending as firms advertise their products over the Christmas season.
Twitter did not immediately respond to a request for comment from Reuters.
According to Pathmatics estimates, most of the organizations stopped spending in November, the same month Musk restored suspended accounts and issued a paid account verification that resulted in scammers impersonating corporations.
According to Pathmatics estimates, 14 of the top 30 advertisers on Twitter withdrew all advertising on the platform once Musk took over on Oct. 27.
Musk addressed the problem of firms halting advertisements in a November event on Twitter Spaces, saying that he understood if advertisers “want to give it a minute.”
Around the same time, Musk criticized activist groups for persuading companies to drop advertisements from social media networks. Ad sales generate roughly 90% of Twitter’s revenue.
Twitter’s fourth-quarter income decreased 35% year on year due to a drop in advertising, according to the Information, citing figures presented by a top Twitter ad executive at a staff meeting last week.