Advertisers hesitant to return to Twitter due to Musk unpredictability
Christopher Hutton
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Advertisers remain hesitant to return to Twitter because of owner Elon Musk’s unpredictable management.
GroupM, one of the largest ad-buying firms, saw its clientele cut spending on Twitter advertising by 40%-50% since Musk’s takeover in October, according to the Information. The advertising losses are a setback to Musk as he tries to find a way to make enough to cover his $44 billion purchase of Twitter and as he molds the company in his own vision.
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Twitter sales representatives also told ad executives to adapt and be prepared for Musk’s “unpredictability and uncertainty,” according to people informed on the matter. The request made executives hesitant to continue spending on Twitter advertising in the near term.
Advertising on Twitter has fallen steadily since Musk took over and began reinstating banned accounts on the platform. Twitter ad spending dropped by 46% in November, the first whole month of Musk’s ownership, according to the Standard Media Index. Future ad bookings for January and February 2023 also fell relative to the previous year’s numbers.
At least 50 of Twitter’s top 100 advertisers paused their ad campaigns by December 2022, according to the liberal media watchdog Media Matters for America.
Several significant advertisers announced they were pausing their advertising budgets after Musk took over, stating that the pause was due to uncertainty.
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Twitter has responded to these declining numbers by emphasizing its premium membership, Twitter Blue, and allowing political advertising on the platform. It’s unclear, though, whether those moves can compensate enough for the lost income from diminished advertising.