San Francisco, 12 April 2023 (GNP): Twitter’s Ad Revenue Expects a 28% Drop in 2023, according to a well-followed estimate released on Tuesday, as the site stumbles under Elon Musk’s management.
Following Musk’s turbulent purchase of Twitter, several significant advertisers have already paused their campaigns after he eased the rules for content moderation and fired more than half of 7,000 staff members.
Musk paid $44 billion for Twitter, yet he has now reduced its worth to just half that amount.
As confidence in the app declines, analysts at Insider Intelligence said they were revising their previous projection of worldwide sales of $4.74 billion by more than a third to $2.98 billion.
https://twitter.com/ChartoftheDay_/status/1645788748100292609?cxt=HHwWgsDSnbGJgtctAAAA
According to Jasmine Enberg, the chief analyst at Insider Intelligence, “The biggest problem with Twitter’s ad business is that advertisers don’t trust Musk”.
“To regain advertiser trust and bring back ad dollars”, she continued, “Twitter needs to unravel Musk’s personal brand from the company’s corporate image.”
Musk’s efforts to develop a subscription service “won’t make up for the lost ad revenue,” stated Insider Intelligence.
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The remaining Twitter users have likewise become less enthusiastic under Musk’s leadership; Insider Intelligence predicts a two-minute drop in daily usage to 34 minutes.
Insider Intelligence claimed the decrease in traffic was brought on by the platform’s growing amount of hostile content, technical issues, and an inability to get into the social video market and compete with TikTok.
Engberg said the news cycle continues to have a significant impact on Twitter activity. “The takeover saga caused a spike in time spent in 2022 that has now dissipated, as users have lost interest in Musk’s antics”, she added.
NEW: By the end of 2023, #Twitter will have erased all of its ad revenue growth since 2019.
To put it another way, Twitter's ad business will shrink to roughly the same size it was 4 years ago. pic.twitter.com/zpH9I1yF8j
— Jasmine Enberg (@jasmineaenberg) April 11, 2023
Musk is scheduled to deliver a keynote address at a major marketing conference on 18 April in Miami, maybe in an effort to convince top advertisers to return to Twitter.
