Social network X is still going through hard times, with advertisers still worried that working with it could cause reputational damage. Since Elon Musk took the company private, it has stopped publishing earnings reports, but last year alone, the platform’s advertising revenue fell by 52%, writes New York Times with reference to data from the marketing research agency Emarketer.
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X’s ad revenue in 2023 will be $1.13 billion, down 52%, Emarketer estimates. It’s not expected to see such a dramatic drop this year, with the social network’s ad revenue expected to fall by just 2.5%, the firm predicts. In June, X management told employees that 65% of advertisers had resumed campaigns on the platform, but they were likely spending less than they had been.
In the US alone, the social network earned $114 million, the New York Times reports, citing internal company documents. This is 25% less than the previous quarter and 53% less than the same period last year. In the third quarter of 2024, the company plans to earn $190 million in its home country, counting on advertising related to the Olympics, football events and election campaigns. But if this goal is achieved, the quarterly income will be 25% lower than in the third quarter of 2023.
Despite the upheaval, X CEO Linda Yaccarino, whom Musk brought in to fix the company’s business, remains buoyant. “My job is to clear the way for all of you to succeed and for X to become the platform of the world,” she said at a May staff-management meeting.
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