Topline
Twitter’s revenue from U.S. advertising in April was down 59% from the previous year, the New York Times reported Monday, after major advertisers left the social media platform following billionaire Elon Musk’s takeover—though Musk claimed two months ago the site was “breaking even.”
Twitter ad revenue has taken a significant hit since Elon Musk took over the company.
Key Facts
Twitter made $88 million in U.S.-based advertising sales during a five week period starting April 1, down 59% from April 2022, the Times reported, citing an internal presentation and seven Twitter employees.
The social media company estimates its U.S. ad revenue will be down at least 56% each week in May, compared to last year, per the Times.
Twitter’s global ad revenue this year is estimated to be 28% lower than it was in 2022, at around $3 billion, according to research firm Insider Intelligence, as Twitter’s top 50 advertisers are spending markedly less since Musk took over the company in October.
Contra
Musk said during an interview in mid-April Twitter was “roughly breaking even,” adding that the advertisers who had left the platform following his acquisition had since returned. At a Wall Street Journal summit in May, he said Twitter isn’t quite profitable but could be soon.
Key Background
Roughly a month after Musk bought Twitter for $44 billion, 50 of the platform's top 100 advertisers had either announced a plan to withdraw from Twitter or had already stopped advertising altogether, a report from the left-leaning Media Matters for America showed. The issue persisted through the year, with Reuters reporting in January those top 50 advertisers spent almost 20% less than they had during that time period the previous year. Shortly after taking over Twitter, Musk tested a wide range of changes to the platform, including readministering once-banned accounts, lifting some of the site’s moderation rules, drastically cutting staff and starting a subscription service for verified badges. Some staff believe advertisers have been spooked by a reported rise in hate speech on Twitter, and the potential for advertising next to controversial posts, the Times reported. Some companies like Kellogg’s said they were drawing back on Twitter advertising “to monitor this new direction.”
What To Watch For
Linda Yaccarino, whom Musk chose to be Twitter’s new CEO, previously served as the chair of advertising sales at NBCUniversal—a sign Musk may see successful advertising as a key to Twitter’s future success.
Tangent
On Friday, Twitter lost two top executives who worked on advertising and content moderation. Ella Irwin, the company’s former head of trust and safety, was in charge of handling content moderation decisions, and told the Wall Street Journal her exit was “partially related” to a controversy over the platform’s handling of a movie about gender issues. She also managed A.J. Brown, who resigned from his position as Twitter’s head of brand safety and ad quality shortly after Irwin exited. Twitter faced claims Thursday it had attempted to suppress a conservative documentary about transgender people. Musk tweeted that it was “a mistake” and promised the “only limit” on content like that would be that it “will not be placed next to advertising.”
Further Reading
Twitter’s U.S. Ad Sales Plunge 59% as Woes Continue (New York Times)
Twitter Safety Executives Exit as Concerns About Policing Content Grow (Wall Street Journal)
Over 500 advertisers have paused spending on Twitter- The Information (Reuters)
Musk Claims Twitter Is ‘Roughly Breaking Even’ (Forbes)
Twitter Loses Another Top Executive Following Musk’s Take Over Last Year (Forbes)
