Ad Spend on Twitter Drops 70 Percent During December 2022

Twitter's revenue has decreased due to declining advertising spending/ (photo: Twitter dock)

JAKARTA – Data from an advertising research firm shows that ad spend on Twitter Inc fell 71% in December 2022. This is due to top advertisers slashing their spending on the social media platform after Elon Musk's takeover of Twitter.

The latest data from the Standard Media Index (SMI) comes as Twitter seeks to reverse the advertiser exodus. They have also introduced many initiatives to win advertisers back, offering some free ads, lifting the ban on political ads and allowing advertisers to gain more control over their ad positions.

According to SMI data, ad spend on Twitter in November fell 55% from a year ago although these months are typically higher ad spend times as brands promote their products during the holiday season.

Twitter did not immediately respond to a request for comment from Reuters, over reports of decreased spend on advertisers on its platform.

Estimates from another research firm Pathmatics have also largely halted their spending in November. This was the month that Musk recovered suspended accounts and released paid account verification which resulted in scammers posing as big companies.

By Pathmatics estimates, fourteen of the top 30 advertisers on Twitter have now discontinued all advertising on the platform after Musk took ownership of the social media on October 27.

During an event on Twitter Spaces last November, Musk addressed the issue of companies stopping ads and said he understands advertisers "want to give it a minute".

Around the same time, Musk also blamed activist groups for pressuring advertisers to pull ads on the social media platform. Even though so far ad sales accounted for about 90% of Twitter's revenue.

Ads are too frequent on Twitter and too big. Taking steps to address both in coming weeks.

— Mr. Tweet (@elonmusk) January 21, 2023

Information technology media also reported, Twitter's fourth quarter revenue fell about 35% year-over-year due to a decline in advertising. They cite details shared by top Twitter ad executives at a staff meeting last week.

But that may not be related to Elom Musk's tweet stating that the display ads on Twitter are currently too large and too frequent that he will start rebuking them.

This action is considered as an unpopular move from Musk in the midst of declining Twitter revenue from advertising.