Twitter’s Profits Down 40% As 500 Top Advertisers Take Out

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Twitter is dealing with a crisis in its core marketing company, as a senior supervisor at the business just recently notified employees that daily income is down 40% compared to last year.

This news, first reported by The Details, comes on the heels of reports that more than 500 of Twitter’s top marketers have ceased costs on the platform because CEO Elon Musk took over.

The ongoing decrease of Twitter’s marketing service makes it tough for the company to recover cost in 2023, as Musk previously stated it would.

Why Are Marketers Pulling Out?

Some significant marketers have actually revealed displeasure of Musk’s approach to content moderation, including the reinstatement of formerly banned accounts and the termination of the company’s essential executives accountable for cutting hate speech.

Musk likewise terminated the majority of Twitter’s sales team, consisting of lots of who supervised of the business’s major advertisers and roughly 50 engineers and information researchers working on enhancing Twitter’s advertising product.

Which Advertisers Are Pulling Out?

Especially, Omnicom and Interpublic Group ad-holding companies have advised that their clients briefly stop all marketing on Twitter as they wait to see what Musk will do next.

Clients of GroupM, the world’s most prominent ad-buying firm, have also lowered their costs given that Musk became CEO, saying the company has actually ended up being high-risk.

What Does This Mean For Twitter Users?

The concerns with Twitter’s marketing organization might lead Musk to make further cost-cutting procedures following his previous reduction of 75% of Twitter’s 7,500 employees and the closure of one of its information centers.

This can affect Twitter’s quality of service, possibly causing more regular blackouts or a lack of new functions for non-paying users.

With the limited resources Twitter has available to establish new tools, it wouldn’t be surprising to see new offerings locked behind the Twitter Blue paywall.

Also within the world of possibility is Twitter charging for formerly free functions, similar to how Musk generated income from confirmation checkmarks.

This is speculation, obviously, as Twitter hasn’t made any public statements regarding its declining ad business.

It stays to be seen what Musk will do to diversify earnings.

With the business’s future at stake, the actions of Musk and Twitter will be closely viewed by the industry and its investors.

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