twitter He has a vital problem. As owner Elon Musk continues to engage in many offensive controversies view o Lifting restrictions on Covid-related disinformation, business social network bleeds income advertisementAccording to an internal report published by the ‘Platformer’ portal, what is needed to keep the company afloat has dropped 15% per year in Europe, Middle East and Africa (EMEA).
The bad news doesn’t end there. And this weekly ad bookings also drop by 49%As one analyst noted Income Twitter in the company’s internal communication channels. All this is a harbinger of a grim future. 92% of Twitter’s revenue (4,500 of its $25,000 million in 2021) comes from ads. Without it, your business is in danger.
“Disaster”
wave layoffs and the changes that Musk brought after Twitter took over created a chaotic scenario that last month led major companies to withdraw or freeze their plans to advertise on the platform. On October 31, just days after the change of ownership, analysts estimated that the social network was at risk of losing around $15.7 million in ad revenue in the three indicated regions. “This is a disaster,” a former company executive told ‘Platformer’.
Last Wednesday, researchers at Media Matters for America published a study in which they found 50 of the top 100. advertisers Twitter chose to pause its users ads on the platform. Among them will be Ford, Chevrolet, Heineken, AT&T, Jeep, CNN, Citigroup or Verizon, among others. This group of companies would spend close to $2,000 million on advertising since 2020.
business problem
Twitter has had far fewer problems with its business model for years than its competitors, for example. Facebook anyone instagram. Being aware of this – and with the pressure it creates banks need to return the roughly $13,000 million they lent to buy the platform-, the tycoon designed a payment scheme with which it plans to increase its subscriber base, thereby creating another source of income that allows the company to survive. For $8 per month, users will be able to get a blue verification mark on their account and see how their messages have more reach than non-paying users.
Again, the ability to get the blue verification password has led many accounts to impersonate other people or companieshurts the reputation of some. This – and other controversial decisions, such as reinstating accounts blocked for spreading hate messages – has led more and more companies to stop advertising on Twitter, adding to the potential cost of losses. Advertisers are always looking for digital spaces where the discussion is healthier, whiter and far from controversial. Elon Musk’s new Twitter is moving in the opposite direction.