Twitter’s revenues fell 40% after hundreds of advertisers stopped spending.
(Photo: Photo by GLENN CHAPMAN/AFP via Getty Images)
Employees walk past an illuminated Twitter log as they leave the company’s San Francisco headquarters on Aug. 13, 2019. – Twitter said on August 13 that users will be able to follow a small number of interests the same way they follow people by the end of the year.
The huge drop in revenue is a big deal for the social media giant, especially since most of its revenue comes from advertising.
By 2021, 90% of Twitter’s revenue (approximately $5.1 billion) will be generated by the spending of its top advertisers.
Now, several sources claim that more than 500 of the company’s top ad partners have stopped spending since Elon Musk took over the company.
Twitter sales are down 40%!
According to The Guardian’s latest report, advertisers are leaving Twitter over a host of issues.
(Photo: Photo by CHRIS DELMAS/AFP via Getty Images)
This illustration photo, taken on July 8, 2022, shows Elon Musk’s Twitter page displayed on a smartphone screen with Twitter logos in the background in Los Angeles. – Elon Musk pulled the plug on his deal to buy Twitter on July 8, 2022, accusing the company of “misleading” statements about the number of fake accounts, a filing found.
Also read: Twitter’s Bird Statue is now up for auction along with other office furniture
One is the worsening hate speech on the social media platform. Apart from this, they are also concerned about the rising number of fake accounts.
Search Engine Journal provided some of the ad companies pulling out of Twitter.
These include advertising holding companies from Omnicom and Interpublic Group.
In addition to them, GroupM, the world’s most prominent ad-buying company, also advised its clients to reduce their spending because Twitter is now a high-risk company.
On Tuesday, Jan. 17, a senior Twitter executive shared the effects of advertiser halts.
He said the company’s revenue is down 40% compared to what it earned on January 17, 2022.
As Twitter’s financial problems worsen, many rumors claim that Elon Musk could file for bankruptcy to prevent the company from closing.
But this remains speculation until the billionaire confirms it.
Twitter Auctions Office Assets
At the time of writing, Twitter is in cost-cutting efforts to mitigate the drop in revenue.
But the social media company is also considering selling some of its assets just to generate revenue.
NPR reported that Twitter’s San Francisco headquarters decided to auction off its excess office assets.
These include a blue neon sign of Twitter’s bird logo ($22,500), the planter sculpture with the shape of “@” ($8,250), as well as a Twitter bird statue ($20,500).
Although Twitter is struggling financially, the social media giant is still making efforts to improve the user experience.
One is making the Twitter Blue Check subscription service more affordable.
We also reported that the Twitter Coins feature is already in development.
Keep your tabs open here at TechTimes for more news updates on Twitter and other online platforms.
Related article: Twitter Starts Selling Usernames To Increase Sales, Online Auctions Coming Soon?
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