A senior Twitter manager said in a presentation to employees that more than 500 of Twitter’s biggest advertisers have suspended spending on the platform since Elon Musk took over the company in October.
Siddharth Rao, technical manager who oversees Twitter’s advertising business engineers, also told staff that the company’s daily revenue was down 40% year-over-year. This highlights the crisis facing the company’s core advertising business.
Note that Elon Musk plans to diversify Twitter’s revenue in the long term so that advertising is not the only major source of income. But the current situation with declining advertising revenue will make it harder for the company to break even in 2023, which Musk predicted 3 weeks ago.
Everything will depend on the company’s ability to generate $3 billion in revenue this year, which Musk said the company was planning when he took over, as well as the ability to pay $1.5 billion a year in debt-related interest. which he raised to acquire Twitter for $44 billion. Twitter’s revenue in 2021 was $5 billion. This is the latest full-year data obtained from the company’s published financial statements.
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The party is on!! 🚀 💫 ♥️https://t.co/zoa3qmcXqC
— Elon Musk (@elonmusk) January 17, 2023
At the same time, Elon Musk published material from the axios resource in his profile, which should inspire confidence in the future of Twitter. It is noted that the company plans to enter into content sponsorship agreements with more than three dozen news agencies, media companies and sports leagues in the first half of this year.
Twitter has a program called Twitter Amplify. It allows broadcasters to post live videos to Twitter that are accompanied by ads at the beginning or end of the video. Broadcasters earn revenue from advertisers and share some of that revenue with Twitter.
Almost all major sports leagues, including the NFL, NBA, NHL, MLB, NASCAR, PGA Tour, and others, are reportedly planning to post content related to regular season games and sporting events on Twitter this year. Sports publishers such as CBS Sports, Turner Sports, ESPN, FOX, Univision and Telemundo are also expected to be involved in key sports deals. News outlets such as the Wall Street Journal, NBCU, Reuters, Axios, Bloomberg, Forbes, Conde Nast and USA Today also plan to participate in various Twitter content deals on major events such as the World Economic Forum in Davos, CES and Pride Week. Finally, entertainment and TV companies such as NBCU, Paramount and Disney are planning to launch content related to various award shows, concerts and prime time TV hits.
Such agreements are expected to compensate to some extent for the loss of direct advertising revenue.
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Source: theinformation, axios