Twitter's revenue dropped by 40% after hundreds of advertisers paused their spending. 

Twitter Revenue Drops by 40% as Advertisers Pull Out | Office Assets Now Auctioned
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Employees walk past a lighted Twitter log as they leave the company's headquarters in San Francisco on August 13, 2019. - Twitter on August 13 said that by the end of the year users will be able to follow a small number of interests the same way they follow people.

The massive earning decrease is a big deal for the social media giant, especially since the majority of its revenues come from advertising. 

In 2021, 90% of Twitter's revenue (around $5.1 billion) was generated from the spending of its top advertisers. 

Now, various sources claim that over 500 of the company's top ad partners halted their spending ever since Elon Musk took over the company. 

Twitter's Revenue Drops by 40%! 

According to The Guardian's latest report, advertisers are leaving Twitter because of numerous issues. 

Twitter Revenue Drops by 40% as Advertisers Pull Out | Office Assets Now Auctioned
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This illustration photo taken on July 8, 2022 shows Elon Musk's Twitter page displayed on the screen of a smartphone with Twitter logos in the background in Los Angeles. - Elon Musk pulled the plug on his deal to buy Twitter on July 8, 2022, accusing the company of "misleading" statements about the number of fake accounts, a regulatory filing showed.

Also Read: Twitter's Bird Statue is Now Up for Auction Along with Other Office Furnitures

One of these is the worsening hate speech on social media platform. Aside from this, they are also concerned about the rising number of fake accounts. 

Search Engine Journal provided some of the ad companies that are pulling out of Twitter. 

These include Omnicom and Interpublic Group ad-holding firms. 

Aside from them, GroupM, the world's most prominent ad-buying company, also recommended its clients reduce their spending because Twitter is now a high-risk company.  

On Tuesday, Jan. 17, a Twitter senior manager shared the effects of the halted spending of advertisers. 

He said that the revenue of the company dropped by 40% compared to what it earned on January 17, 2022. 

As Twitter's financial problems worsen, many rumors claim Elon Musk could file for bankruptcy to prevent the company from closing. 

But, this will remain speculation until the billionaire confirms it.  

Twitter Auctions Office Assets

As of press time, Twitter is conducting cost-cutting efforts to lessen its revenue drops. 

But, the social media company also considers selling some of its assets just to gain earnings. 

NPR reported that the Twitter headquarters in San Francisco decided to auction its surplus corporate office assets. 

These include a blue neon sign of Twitter's bird logo ($22,500), the planter sculpture with the shape of "@" ($8,250), as well as a Twitter bird statue ($20,500). 

Although Twitter is struggling financially, the social media giant still makes efforts to enhance user experience. 

One of these is making the Twitter Blue Check subscription service more affordable. 

We also reported that the Twitter Coins feature is already in development. 

For more news updates about Twitter and other online platforms, keep your tabs open here at TechTimes.  

Related Article: Twitter to Start Selling Usernames to Boost Revenue, Online Auctions Soon?

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