Business News Asia
According to data from the Standard Media Index (SMI), advertising spend on Twitter plummeted 71% in December as big advertisers withdrew from the platform following Elon Musk’s acquisition of the company.
The latest information from SMI comes as Twitter is trying to win back advertisers, having launched a series of initiatives such as offering free advertising and removing restrictions on political advertising to allow more companies to determine the placement of their own ads.
SMI’s data shows that ad spend on Twitter in November was down 55% from the previous year, despite the holiday season being a crucial time for brands to promote their products.
Forecasts from another research institute, Pathmatics, also revealed that companies halted their advertising spending on Twitter in November, the same month that Musk restored the banned account and opened a payment system to receive the verification badge. This has led to the emergence of scammers imitating various organizations.
According to Pathmatics’ estimates, 14 out of the top 30 advertisers on Twitter have discontinued all advertising on the platform since Musk took over on October 27. This significant decline in ad sales highlights the challenges that Twitter faces in attracting and retaining advertisers.