Twitter’s U.S. advertising revenue falls 59%
Linda Yaccarino became Twitter’s CEO today – but she has a lot of work to do. According to a presentation obtained by The New York Times, Twitter’s revenue from advertising has dropped 59% in the past year.
Despite Elon Musk’s recent optimism about Twitter’s advertising progress, stating that “almost all advertisers have returned” and predicting profitability for the platform, the situation remains uncertain.
Something doesn’t add up. During the five weeks from April 1 to the first week of May, Twitter’s U.S. advertising revenue was $88 million. The Times reported that Twitter’s weekly sales were often below its forecast, sometimes as much as 30 percent. The internal document states that Twitter’s U.S. ad revenue is projected to drop by at least 56% each week compared to the previous year.
Twitter’s U.S. ad revenue is projected to drop by at least 56% each week compared to the previous year, according to the internal document.Twitter’s advertising sector is crucial to its success and value, accounting for 90% of its revenue.
When he acquired Twitter for $44 billion in October and privatized the company, Musk pledged to create “the most respected ad platform.” However, he soon strained relationships with advertisers by terminating key sales executives, promoting a conspiracy theory on the platform and reinstating previously banned Twitter users.
How brands reacted.
Several major ad agencies and brands, including General Motors and Volkswagen, suspended their Twitter ad investments. Musk had projected that Twitter’s revenue for 2023 will reach $3 billion, a reduction from $5.1 billion in 2021 when Twitter was a publicly-traded company.
Several of Twitter’s major advertisers, such as , Amazon, and Disney, have reportedly reduced their spending on the platform compared to the previous year, according to three former and current Twitter employees. They also noted that high-value banner ads on Twitter’s trends page, typically purchased by large brands for promotional purposes, are frequently remaining unsold.
Twitter has faced public relations issues with major advertisers, including Disney. Twitter accidentally gave the gold checkmark, which indicates a paying advertiser to an account unaffiliated called @DisneyJuniorUK, in April. Disney demanded an explanation from Twitter and assurances that such mistakes would not happen again. AppleDespite the challenges it faces, Twitter still has a large global audience. It still has millions of users who interact daily. This offers unique opportunities for brands to be seen and interacted with. Yaccarino is facing a number of challenges after being appointed by Musk as Twitter’s new CEO. She has taken over as CEO today – weeks earlier than expected,
Damage done? The new leadership under Yaccarino could signal upcoming changes in their approach to problematic content, potentially improving the advertising environment. Twitter has also added Joe Benarroch, formerly NBCUniversal’s senior vice president of communications, advertising and partnerships.
Advertisers should watch Twitter’s changes, as it may continue to be a potential key player in digital marketing strategies.Opinions expressed in this article are those of the guest author and not necessarily Search Engine Land. Here is a list of staff authors.