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Twitter has been on shaky ground for several months now, and it seems that things are not looking up just yet. According to a report from The New York Times, the number of US users using Twitter to post ads is declining.
One of the major issues that Twitter dealt with after Elon Musk took over was the Exodus of many people using Twitter for ad space. Selling ads is a major source of income for Twitter, and Elon Musk bought the company with the sole plan of making it profitable. So, this was an issue.
Elon Musk even stated that “Almost all advertisers have come back”, and that the company’s ad business was up and running again. However, the reality for US-based users might not be so bright.
US users don’t want to use Twitter for ads
Despite Elon Musk’s claims, the number of US users using Twitter as their personal billboard is dropping. Between the first week of April and the first week of May, Twitter wracked in 89 million dollars from its US ad business. That’s a whopping 59% drop year over year. It’s a tough break for the company.
An internal document states that the company does normally fall short of its US weekly sales projections, and it could be by as much as 30%. Still, a 59% drop year over year points to a major issue.
The company’s ad staff points to the current content on Twitter as being the culprit behind this. They pointed to factors like pornography, hate speech, and ads featuring marijuana and online gambling. Not many people want to advertise in a market with so much negative content. Thus, they’re taking their ad money to different platforms. This is similar to why a lot of advertisers exited YouTube.
It seems bleak, and it’s only made worse by the fact that the company projects that its US Revenue could see a 56% drop each week compared to the same time last year. Only time will tell if Twitter can revitalize its ad business.
The company did recently employ Linda Yaccarino, the NBCUniversal executive. Hopefully, she will be able to push Twitter into a new direction.
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