The upheaval that caused tycoon Elon Musk’s arrival at Twitter adds a new episode, as his landing took out a large number of his major advertisers. Specifically, to 72 out of 101 large companies Advertisers on the ‘bluebird’ social network have fled in recent months, coinciding with the billionaire’s purchase of the company, data from Pathmatics shows.
companies like Zoom, Wells Fargo, Pfizer, Volkswagen, Toyota, Nike or McDonald’s They are among the companies that have stopped buying advertising space on the social network, which is a serious step back for a company that, at least until 2021, generated 88.7% of its revenue from advertising. According to the last annual results report, presented in December 2021, before the company was bought by Musk, 4.506 of the $5.077 million that Twitter brought in they went through advertising that year.
Looking for new advertising tools
The Wall Street Journal reports that in order to stop this bleeding, those responsible for Twitter are holding meetings with representatives of these companies and have promised them the introduction new advertising tools.
Musk, who announced two days ago that he would resign from his position once he finds a CEO to lead the platform, recently launched a payment system to verify the identity of users with the aim of diversifying its revenue streams, although the success of the initiative is unknown.
November 4 tycoon, who fired more than half of the company’s staff -according to various media calculations- he assured that Twitter loses 4 million dollars a day. According to Pathmatics, the preferred platform for American companies to advertise their products or services is by far Facebook, which in the third quarter of this year entered 6,800 million dollars this way. They are followed, in this order, by Instagram, TickTok and Snapchat.