According to The New York Times, Twitter’s advertising revenue has dropped by 59% between April 1st and early May of this year compared to the same period in 2022. Twitter has struggled to meet sales projections and this isn’t likely to change anytime soon, according to documents seen by the NYT.
Elon Musk blamed advertisers in Europe and North America for “extreme pressure” on Twitter during a Twitter Space last week, where he also revealed that “half our advertising” disappeared. However, Twitter’s ad sales staff are concerned that advertisers are being put off by an increase in hate speech and pornography, alongside an excess of ads for online gambling and marijuana products. Since Musk took over Twitter, he has fired key sales executives and reinstated banned users, which has caused ad agencies and brands, including GM and Volkswagen, to pause ad spending.
According to employees, other advertisers such as Apple, Amazon and Disney have been spending less on advertising than last year. Some cited an example of large banner ads that go unsold and complained about inconsistent support, confusion over changes, and misinformation and toxic content on the platform. Six agencies also reported that their clients had limited ad spending on Twitter due to these issues.
However, the report states that some large media buyers have recently advised their clients to return to Twitter. The appointment of Linda Yaccarino as CEO last month may also help Twitter improve its relationship with advertisers and resolve issues around moderation for hate speech, pornography, and more, as Musk said she would focus primarily on business operations while he focuses on product design and new technology.