Advertising spending on Twitter dropped 71% in December, as the major advertiser cut their expenses on the social media platform after Elon Musk stepped in as CEO, according to Standard Media Index (SMI).
Twitter is facing the advertiser exodus since Elon Musk became the platform CEO in late October. It has launched a series of initiatives to win back advertisers, such as offering some free ads, lifting a ban on political advertising and allowing the company to control its own advertising position.
November was a traditional month of higher spending as brands promoted their product, but from SMI data, the spend on advertising dropped 55%. In November, Musk brought back the suspended account and announced a paid account verification which resulted in scammers impersonating corporations.
Around the same time, Elon Musk has blamed the activist group for pressuring the advertisers to pull ads on Twitter. Ads sales accounts for 90% of Twitter’s total income.
Twitter 4Q22 earnings fell nearly 35% YoY because of fewer advertising, reported by technology-focused publication the Information, referring to details shared by top Twitter ad executives at staff meetings last week.