After taking over Twitter in October 2022, Elon Musk made several changes in the company. In an effort to reduce the platform’s reliance on ad dollars, the CEO introduced the blue tick subscription for all users. However, these aggressive moves made by Musk have resulted in the loss of 50 of its top 100 advertisers in a short span of time. Now according to Reuters, Twitter will soon introduce new controls for ad placements. This will allow companies to prevent their ads from being displayed above or below tweets that contain certain keywords.
This is a commendable effort to bring back lost advertisers while also attracting new advertisers to its platform.
Twitter’s new head of trust and safety, Ella Irwin, told Reuters that the microblogging platform will now rely more heavily on automated content moderation. Therefore, the company is bringing its content moderators in-house, many of whom are contracted through third-party vendors. By bringing content moderators in-house, the platform could invest more resources in moderation for non-English languages.
Elon Musk owned Twitter is also offering “biggest advertiser incentive ever on Twitter,” promising more impressions based on the amount of money spent.
Twitter’s ad revenue declining
It is important to note that a whopping 90% of Twitter’s total revenue comes from the advertisement, every year. However, this has been declining.
It is important to note that a whopping 90% of Twitter’s total revenue comes from the advertisement, every year. However, this has been declining. The social network had projected to generate $1.4 billion in ad revenue in Q4 2022. However, under the circumstances as they stand, company’s advertising revenue will not exceed $1.1 billion. Even the World Cup, which most often results in a spike in Twitter ad sales, has seen a decline.
Twitter’s lost 50 advertisers collectively spent more than $750 million on the platform.
Surprisingly, Twitter’s ad revenue in Europe, the Middle East, and Africa (EMEA) was down 15% in 2022, and November week’s advertising bookings were down 49%.
