The weeks since Elon Musk took the reins of Twitter have been filled with chaos — including aAnd with premium services , And this week, a new report shows the impact of the management change on the social media giant’s finances.
The nonprofit watchdog group Media Matters for America published a report Tuesday saying Twitter has lost half of its top advertisers since the platform was acquired by Elon Musk in late October.
According to the report, 50 of the platform’s top 100 advertisers, which have spent nearly $2 billion since 2020, “have either announced or stopped advertising” in recent weeks. The report said these companies could earn more than $750 million in advertising in 2022 alone, based on data as of November 21.
Chevrolet, Chipotle Mexican Grill, Ford and Jeep are among the companies that have either issued a statement or recently publicly reported discontinuing their ads on the site, the report said. Others, dubbed by Media Matters as “silencers”, have since closed their ads on Twitter., the report was found using Pathmatics data. Those companies include AMC Networks, AT&T, BlackRock, Chanel and Kellogg.
Not every company included in the report has explicitly said that they stopped or slowed down advertising because of Musk. Earlier this month, for example, a spokesperson for Kellogg said the company was pausing its ads as it continued to “monitor this new direction and evaluate our marketing spend.”
The other seven companies are slowing their advertising on Twitter “to almost nothing,” the report said. Those companies spent more than $255 million on the platform in 2020 and nearly $118 million since January 1.
An analysis published Tuesday by The Washington Post found that more than a third of Twitter’s top advertisers have not advertised on the platform in the past two weeks. For example, Jeep and Mars candy haven’t had any ads on the site since Nov. 7, the post said.
“Mars began suspending advertising activities on Twitter in late September after we became aware of some significant brand safety and appropriateness incidents,” Mars told The Post in a statement.
Several advertisers have expressed concern about the site’s potential new strategies for moderating content and those policies,
Earlier this week, the director of a medium-sized business-to-business company wrote on the communications site Blind that he pared his $750,000-a-month Twitter ad spend in recent weeks. The company is not listed among the platform’s top advertisers, but a widely shared post from the director said Twitter typically makes up about 8 to 10% of their mix.
Two weeks after Musk took control of Twitter, the director said that the performance of his ad campaign “fell off significantly” as there was a sharp drop in engagement. They also noted “serious brand safety issues” as “radical antisemitism and adult spam persisted for days even when flagged.”
He did not blame Musk for these issues, noting that some problems may be due to “changes in users on the platform”, but said that regardless, they were issues that “cost us real money. “
Musk himself complained Due to the loss of advertising on the site.
On Tuesday, a Twitter user pointed to an October 28 tweet in which Musk promised to form a content moderation council to discuss restoring banned accounts. ,[S]Peak of ‘completely fictitious’ tweets,” the person wrote, implying that Musk reneged on his promise to reinstate previously suspended users.
Kasturi responded by blaming the activists. “A large coalition of political/social activist groups agreed that we should not try to kill Twitter by starving it of advertising revenue if I agreed to the condition.”
“He broke the deal,” he said.
A day after Media Matters published its report, Twitter also announced its launch New “performance advertising solutions that deliver results and relevance.” The launch aims to deliver a strong investment return for companies while providing more “relevant advertising” for consumers, Twitter Told,