More Than Half Of Twitter’s Top Advertisers Stop Spending On Platform, Data Shows

Around 625 of its top 1,000 advertisers comprising major brands such as Coca-Cola, Unilever, Jeep, Wells Fargo and Merck, had pulled their ad dollars as of January,

Twitter has lost more than half of its top 1,000 advertisers from September 2022 who are no longer spending on the platform in the first weeks of January, reported CNN citing data from digital marketing analysis firm Pathmatics by Sensor Tower.

Around 625 of its top 1,000 advertisers comprising major brands such as Coca-Cola, Unilever, Jeep, Wells Fargo and Merck, had pulled their ad dollars as of January, the estimates from Pathmatics noted based on data running through January 25.

Wells Fargo said paid advertising on Twitter has been paused, but it continues to use it as a social channel to engage with customers.

How it impacted Twitter revenue?

The company’s monthly revenue from the top 1,000 advertisers plunged by more than 60 per cent from October through January 25, from around $127 million to just over $48 million, according to the data.

The data clearly highlights the sharp decline in the company’s $4.5 billion advertising business. Since Elon Musk acquired the company in late October, advertisers were cautious about the safety and stability of the platform given his plans to cut staff and relax content moderation policies. In early November, Musk also said the platform witnessed a “massive revenue drop.”

Even as Twitter’s ad business remains much smaller compared to its competitors Facebook and Google, it was still contributing to the vast majority of the company’s revenue. Hence, it becomes crucial for Musk to fill in that gap as he also needs to pay back interest for the loan taken to acquire Twitter for $44 billion.

Musk, who had initially clashed with advertisers, is now trying to woo them back to the platform. The company launched a Super Bowl “fire sale” deal for advertisers to woo them back for one of its biggest audience days of the year, according to the Wall Street Journal report. Apart from this, Twitter also partnered with a third-party “brand safety” firm that says it can show advertisers if their ads appear alongside inappropriate or unsafe content on Twitter.