Twitter is facing a critical challenge under Elon Musk’s leadership as the platform navigates a shifting landscape of advertising interest and policy changes. An internal assessment cited by the Platformer publication indicates a steady erosion of income across Europe, the Middle East, and Africa, with a 15% annual drop. The trend is mirrored by a weekly decrease in ad bookings, illustrating a broader pullback from brands in this period.
The situation worsens as advertising revenue remains the dominant source for Twitter. In 2021, approximately 92% of the company’s revenue came from advertising, equating to about 4.5 billion of a 25 billion total. Without sustained ad demand, the platform’s financial health faces serious risk and companies that rely on Twitter for reach may feel the impact sooner rather than later.
Disaster
The leadership changes and executive turnover that followed Musk’s takeover have contributed to a highly unsettled advertising environment. Analysts, just after the ownership transition, estimated potential losses in ad revenue of around 15.7 million in the EMEA region alone over a short window. Industry insiders described the period as a disaster, underscoring the fragile revenue model during a time of upheaval.
Recent analyses by Media Matters for America revealed that half of Twitter’s top 100 advertisers paused or paused some activity on the platform. Among the names cited were Ford, Chevrolet, Heineken, AT&T, Jeep, CNN, Citigroup, and Verizon. Collectively, these brands have spent substantial sums on advertising since 2020, and their pauses contribute to a meaningful revenue gap for the network.
Business Problem
Twitter has historically faced fewer structural challenges than some rivals, yet the current climate threatens its core business. In response, the leadership explored strategies to diversify income beyond advertising, including measures aimed at expanding the user base and encouraging paid features. Plans discussed include a monthly subscription model that would grant a blue verification badge and extend reach for paying users, potentially creating a new revenue stream to support platform operations.
Introducing a pay-to-verify layer has raised concerns about user verification authenticity, impersonation risks, and reputational harm for brands. Instances of impersonation and account reinstatements of previously blocked accounts have intensified worries among advertisers about brand safety. As more advertisers seek spaces with healthier, less contentious conversations, Twitter’s pivot toward paid features faces close scrutiny from the marketing world, which is watching for evidence that the model can stabilize revenue without compromising trust.
The broader advertising ecosystem remains vigilant as brands recalibrate where and how they allocate spend. The challenge for Twitter is balancing innovation with reliability, ensuring that changes support long-term growth while maintaining the confidence of advertisers who measure impact through reach, engagement, and return on investment. The coming period will reveal whether new monetization avenues can compensate for ad volatility and whether brand safety concerns can be addressed in a way that preserves the platform’s appeal to marketers.