{"id":29184,"date":"2023-06-05T19:56:08","date_gmt":"2023-06-05T19:56:08","guid":{"rendered":"https:\/\/danielsmarketingblc.com\/CuratedProducts\/?p=29184"},"modified":"2023-06-05T19:56:08","modified_gmt":"2023-06-05T19:56:08","slug":"twitters-ad-revenue-continues-to-decline-under-elon-musk","status":"publish","type":"post","link":"https:\/\/danielsmarketingblc.com\/CuratedProducts\/2023\/06\/05\/twitters-ad-revenue-continues-to-decline-under-elon-musk\/","title":{"rendered":"Twitter\u2019s Ad Revenue Continues to Decline Under Elon Musk"},"content":{"rendered":"

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While Elon Musk has constantly reiterated that his purchase of Twitter is about securing freedom of speech, and that recouping the $44 billion he paid for the corporate doesn\u2019t matter<\/a>, he still has bills to pay, and investors to make whole as he goes about reforming the business.<\/span><\/span><\/span><\/span><\/span><\/p>\n

Which is why the most recent reports on Twitter\u2019s ad sales are vital, with The Recent York Times<\/a> reporting that Twitter\u2019s US ad sales are down 59% year-over-year, reflecting worsening ad sales at the corporate over time, despite Musk\u2019s assurances that advertisers had been steadily coming back to the platform<\/a>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

In accordance with NYT, Twitter recently shared an internal overview of its ad sales performance, which showed that total ad sales are down 59%, while the corporate is commonly falling wanting its US weekly sales projections. That\u2019s worse than the 50% decline that Musk confirmed back in March<\/a>, which shows that companies are still spooked by Musk\u2019s reformations on the app, which have included recent rules around acceptable speech, and reinstatements of a number of the platform\u2019s most controversial users.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

And Musk himself hasn\u2019t helped its case. Elon continues to share his often controversial opinions on hot-button topics, including gender affirmation, the war in Ukraine, the federal government\u2019s COVID response, population collapse, crime, immigration, and more.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Which, after all, was the entire point of his Twitter takeover in the primary place. Musk says that he bought Twitter to fight free of charge speech, and battle against mass media censorship, and that, in some ways, is a noble stance. However the side effect is that Twitter\u2019s ad revenue goes to take successful consequently. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

And when that income stream makes up some 90% of your organization\u2019s revenue, that could be a difficult path to take.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Musk\u2019s most up-to-date stance on this front saw two of his top brand safety experts move on from the corporate, after Musk sought to reverse their decision on supporting the discharge of a controversial anti-trans documentary<\/a>. Musk demanded that the principles around such be watered down, while also promoting the documentary on his own profile, which led to <\/span><\/span>each Ella Irwin, the platform\u2019s head of trust and safety, and <\/span><\/span><\/span><\/span>AJ Brown, Twitter\u2019s chief of name safety,\u00a0each leaving the corporate<\/span><\/a>\u00a0consequently.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> \u00a0\u00a0\u00a0<\/span><\/span><\/span><\/span><\/p>\n

That\u2019s led to one more recent swell of concern amongst ad partners, provided that Twitter\u2019s brand safety team has now been further weakened, and bent to Musk\u2019s ideological will, which could see Twitter\u2019s ad revenue decline even further in the approaching months.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Musk, after all, has also been looking for to enhance Twitter\u2019s income streams by adding in recent elements, primarily via subscriptions, each to Twitter itself and to individual creators within the app. Musk had been hoping that subscriptions to Twitter Blue would eventually make up 50% of Twitter\u2019s revenue intake<\/a>, but to this point, despite Musk removing legacy verified ticks<\/a>, and forcing advertisers to pay for Blue<\/a> to maintain running ads, Twitter Blue take-up has remained at lower than 0.3% of Twitter\u2019s total user base<\/a>, akin to around $16.8 million per quarter.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

That\u2019s a tiny fraction of the $1.18 billion in revenue<\/a> that Twitter brought in in Q2 2022, the corporate\u2019s last revenue update before Musk took over on the app. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Even when that total revenue number has declined by half now, Twitter Blue income remains to be only a fractional element in Twitter\u2019s broader revenue pie, while price increases to Twitter\u2019s API<\/a> also appear to have had negative impacts on usage. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Essentially, because it stands straight away, despite Musk\u2019s efforts, Twitter still needs loads of ad dollars to maintain running, or it\u2019ll run the danger of going out of business – even with 80% fewer staff to pay<\/a>. That is the situation that incoming Twitter CEO Linda Yaccarino<\/a> will inherit when she takes the reigns on the app shortly, with Yaccarino also bringing over other former NBCU ad execs<\/a> to assist her re-build Twitter\u2019s ad business, and win back advertiser trust.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

It\u2019ll be a tall order \u2013 especially as Musk continues to publicly advocate for controversial approaches to certain topics. But Yaccarino has loads of experience in constructing such a business, as long as she\u2019s in a position to keep off on Elon\u2019s various whims, and be sure that he doesn\u2019t proceed to spook already wary brand partners.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

That perhaps an unimaginable task, given Musk\u2019s stated ambitions for the app. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Again, on one hand, that\u2019s admirable, in adhering to his vision of free speech, despite the potential, personal losses that he may incur for such. But on the opposite, it could proceed Twitter\u2019s downward spiral, even with one of the best efforts of top ad execs on its side. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

While Elon Musk has constantly reiterated that his purchase of Twitter is about securing freedom of speech, and that recouping the $44 billion he paid for the corporate doesn\u2019t matter, he still has bills to pay, and investors to make whole as he goes about reforming the business. Which is why the most recent reports […]\n","protected":false},"author":1,"featured_media":29185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"fifu_image_url":"https:\/\/www.socialmediatoday.com\/imgproxy\/koB3pDlU3i6wPSTmK0L_VqqDHrUmqFQ-rKVdw9czW4A\/g:ce\/rs:fill:770:435:0\/bG9jYWw6Ly8vZGl2ZWltYWdlL1R3aXR0ZXJfYnVpbGRpbmdfLnBuZw.png","fifu_image_alt":"","two_page_speed":[],"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[97],"tags":[833,834,371,372,146,832],"class_list":["post-29184","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-continues","tag-decline","tag-elon","tag-musk","tag-revenue","tag-twitters"],"aioseo_notices":[],"yoast_head":"\nTwitter\u2019s 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