Twitter has reportedly lost almost half of its advertising revenue since the change of ownership to Elon Musk for $44bn back in October 2022.
• Twitter loses almost half of its advertising revenue since Elon Musk took over back in October 2022.
• Threads among alternative platforms that leverage this setback by twitter to increase their ads revenue.
In attempts to cut costs, Musk sacked about half of its 7,500 staff members when he took over and projected a spike in sales in the coming fiscal year.
The Musk Effect
When Elon Musk took an active interest in Twitter, investing both his time and resources, it was evident that his take over would bring about changes in the company’s status quo. Musk’s tweets have been known to spark controversy, resulting in widespread global discussions. Advertisers have since grown increasingly cautious due to Musk’s unpredictable behavior and the potential backlash they might face by association.
This fluctuating environment on twitter has made advertisers seek more stable and predictable platforms to promote their brands and products.
Competing platforms like Facebook, Instagram, and the newly created Threads have benefited dearly from Twitter’s struggles, as advertisers divert their resources to those platforms instead.
Twitter’s Future Outlook
Twitter has indeed recognized the challenges posed by the decline in advertising revenue and has taken steps to address the situation.
According to Twitter’s management, the platform has been working on implementing content policies, and introducing features to give advertisers greater control over where their ads.
Twitter has also been exploring partnerships and collaborations with influencers and content creators to diversify its revenue streams and offer new advertising opportunities.
Which do you prefer, Threads or Twitter? Between Elon Musk & Mark Zuckerberg, who is most likely to come out victorious in the long run? Time will tell.