Advertising spending on Twitter dropped by 71 per cent in December, according to data from research firm Standard Media Index (SMI). The decline comes as top advertisers reduced their spending on the social media platform following the takeover by Elon Musk.
The report showcased that Twitter ad spending saw a 55 per cent drop in the month of November from the previous year. The slump was seen despite it typically being a time of higher ad spending for brands during the holiday season.
After Elon Musk's takeover, Twitter witnessed an exodus of advertisers from the platform. Twitter tried to lure advertisers back by introducing new initiatives. The social media company offered incentives like free ads, lifting a ban on political advertising, and giving companies more control over ad positioning.
The decline in ad sales, which account for around 90 per cent of Twitter's revenue, reportedly contributed to a 35 per cent drop in Q4 revenue year over year.
A report from another research firm Pathmatics suggested that most of the advertising companies had stopped spending in November. November was the time when Musk unblocked some of the most controversial accounts on Twitter, including former US President Donald Trump and popular singer Kanye West (later, suspended him again).
Another shift in strategy was visible when Elon Musk announced a new paid account verification process with Twitter Blue. With the new subscription, users need to pay a fee of $8 ($11 for iOS and Android) for getting verified and more.
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