Twitter keeps bleeding advertisers almost fourth months after the infamous takeover of the microblogging site by Elon Musk. A report by Pathmatics, a marketing platform, has found that the ad revenue contribution by Twitter’s top 10 advertisers has reduced by 89 per cent since October.
According to estimates by Pathmatics, from September to October last year, the top 10 advertisers on Twitter spent $71 million on ads. In the past two months that figure dropped to just $7.6 million, a decline of 89 per cent, said the research firm. Twitter’s top ad customers have historically included marquee names such as HBO, Amazon, IBM and Coca-Cola.
This steep decline indicates that contrary to expectations, Twitter has been unable to recover ad revenues in the transition period. Elon Musk’s initial takeover in October had already shocked Twitter’s ad revenue streams, when advertisers immediately cut back ad spending by nearly 40-50 per cent.
Almost 90 per cent of Twitter’s annual revenue comes from advertising revenue. Therefore, even though Twitter has implemented alternative monetisation strategies such as charging nearly $11 for the blue tick, its decline in ad cents is worrying.
Also read: Twitter Blue gains $11 million in mobile subscriptions: Report
While Twitter does not generate significant ad revenues from India, experts told businessline that major Indian companies have also started deprioristing advertising on Twitter.
Ajimon Francis, Managing Director at Brand Finance India, said advertisers are worried by the volatility in Twitter’s management style. “Twitter changed the pricing of its blue tick multiple times, creating uncertainty in the minds of Twitter’s users and advertisers on the platform. Advertisers are unwilling to invest on Twitter, waiting to stability on the strategic front.”
Global reports on the matter suggest that companies’ concerns in advertising on Twitter range from the increased proliferation of hate speech on the platform to excessive churn in Twitter’s sales department which was affected by the layoffs.
Twitter laid off the majority of its sales team in India as well, letting go of almost 90 per cent of its 200 odd employee base last year.