Since the much-publicized takeover by Elon Musk, Twitter has seen its daily revenue plummet by up to 40%. While Musk has been widely criticized for his behavior as CEO and management of the company in recent months, this info, reported by The Information, indicates things are also falling apart behind the scenes.
Much of the lost revenue is attributed to recent news that more than 500 of Twitter’s top advertisers cut or entirely stopped advertising on the platform since Elon Musk’s takeover.
Why Are Advertisers Pulling Away From Twitter?
The main issue raised by most major advertisers is Musk’s approach to content moderation. Musk has claimed to be a proponent of free speech online, indicating that content moderation should be handled with a light hand – if at all.
As such, Musk has reinstated many previously banned accounts – including those of avowed white supremacists – and dismissed most of the staff responsible for content moderation on the platform.
Understandably, this has made many large advertisers wary of how safe the platform is for their advertising.
At the same time, Musk has also terminated much of Twitter’s sales teams, including those in charge of accounts with the company’s biggest advertisers. Similarly, engineers and data scientists who were working to improve the advertising service on Twitter have been dismissed.
What This Means For Twitter’s Future
Unless Musk finds a way to reverse course and satisfy previous advertisers’ concerns, this could bode poorly for the company’s future. Users have already expressed frustration with having new features locked behind a paywall as part of Twitter Blue, indicating the premium service will not be able to make up for lost ad revenue. Meanwhile, Musk’s slashing of staff will make it difficult for the company to engineer new tools or services that generate revenue.
With all this in mind, advertisers have every right to approach the platform with caution.