Since Elon Musk took over Twitter last year, more than 500 advertisers have stopped spending on the social media platform, according to a person familiar with the company’s advertising operations, which was revealed by The Information on Wednesday.
The Information also reported that the company’s daily revenue on January 17 was 40% lower than the same day a year earlier, emphasizing the crisis confronting its primary ad business. Platformer first reported the decline in Twitter’s revenue on Tuesday.
Tiny scoop: We learned today that Twitter’s revenue is down 40 percent year over year (& Musk’s first giant interest payment on the company is due at the end of the month): https://t.co/IH7lJiQ0Dw— Zoë Schiffer (@ZoeSchiffer) January 18, 2023
As more companies stop their ad campaigns on Twitter because of concerns about content moderation after Elon Musk’s takeover, the data from MediaRadar, which was published in November, showed that the social media platform started losing advertisers months before Elon Musk’s $44 billion takeover was finalized.
A couple of days ago, The Wall Street Journal reported that Twitter is offering free ads to lure back advertisers and boost its ad revenue. According to emails seen and reported by the WSJ, the social media company said it would match advertisers’ ad spending up to $250,000. The total amount, $500,000, must be spent before February 28, it added.
Last month, Twitter sent out emails to advertisers informing them of its “biggest ad incentive ever” and offered to cover their spending up to $500,000. It also rolled out new ad controls that allow them to block their ads from appearing next to certain content, and recently announced that it will allow more political ads on the platform in the coming weeks.