Elon Musk may have had a grandiose vision to revamp Twitter into a “digital town square” and make it a space for thriving democracy. However, when he completed the historic $44 billion deal, Musk was presented with a variety of problems while executing his vision. The biggest hurdle that Musk faced was declining revenue when advertisers started to pull out of advertising.
So Elon Musk employed various ways to revive the dwindling revenue. He started firing employees, leading the biggest layoff drive of 2022. Later, he introduced an $8-per-month subscription, which proved to be an epic fail. Then he reintroduced it with new and exclusive features. However, the Twitter owner is still not able to pull advertisers, leading to a further decrease in revenue and an already reduced valuation of the platform.
Twitter’s Advertising Revenue Has Reduced To $88 Million
Elon Musk has been trying to save the sinking ship that is Twitter! In October 2022, when Musk bought the microblogging site, the activists lobbied and successfully convinced the advertisers to pull their advertisements. Since then, he has been trying to get advertisers back. During the BBC interview, Musk admitted, “I think almost all advertisers have come or said they are going to come back.”
The New York Times has acquired internal Twitter documents, and the documents state that Twitter’s ad revenue has plummeted further. A new report emerged in 2022 that revealed that the top 100 advertisers had stopped advertising their products. The seven advertisers, who spent $118 million on advertising, have exited. As per the documents, Twitter’s U.S. revenue from April 1 to May’s first week was $88 million. The company has failed to maintain good sales projections since Musk acquired the platform.
Many Advertisers Vary To Advertise Their Products On Elon Musk-Owned Platform Due To Racism And Adult Content
The advertisers are not very happy with promoting their clients’ products on Twitter. Many leading advertisers like Apple, Disney, and Amazon have limited advertising on the platform due to “misleading and toxic content on the platform.” Elon Musk attended a digital marketing conference to attract advertisers. The current CEO of Twitter, Linda Yaccarino, interviewed Elon Musk in Miami.
Many advertisers, like McDonald’s, have expressed concerns due to the owner’s explosive tweets, adult content, and racism.
The fast food joint’s chief marketing officer wrote, “For many communities, his willingness to leverage success and personal financial resources to further an agenda under the guise of freedom of speech is perpetuating racism resulting [in] direct threats to their communities and a potential for brand safety compromise we should all be concerned about.”
Recently, Twitter has approved advertisements for marijuana products and online gambling. In May 2023, the top four advertisers on Twitter in the U.S. were fantasy sports and online gambling. It is already advertising cannabis accessories and erectile dysfunction products. Twitter has been seeing exponential growth in adult content.
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