(Reuters) – Ad spend on Twitter Inc fell 71% in December, data from an advertising research firm showed, as top advertisers slashed spending on the social media platform following the acquisition of Elon Musk.
The recent Standard Media Index (SMI) data comes as Twitter moves to reverse the advertiser exodus. It has introduced a slew of initiatives to win back advertisers, offering some free ads, lifting a ban on political ads, and giving companies more control over the positioning of their ads.
According to SMI data, ad spend on Twitter fell 55% in November from last year, despite these months traditionally being a time of higher ad spend as brands promote their products during the holiday season.
Twitter did not immediately respond to a Reuters request for comment.
Most companies had stopped spending by November, estimates from another research firm Pathmatics found, the same month Musk reinstated suspended accounts and released a paid account verification that led scammers to impersonate companies.
Fourteen of the top 30 advertisers on Twitter stopped all advertising on the platform after Musk took charge on Oct. 27, according to Pathmatics estimates.
At a November event on Twitter Spaces, Musk spoke about the problem of companies pausing ads, saying he understands if advertisers want to “give it a minute.”
Around the same time, Musk had also blamed activist groups for pressuring advertisers to run ads on the social media platform. Advertising sales account for about 90% of Twitter’s revenue.
Twitter’s fourth-quarter revenues fell about 35% year over year due to a slump in advertising, a tech-focused publication reported the Information, citing details revealed by a top Twitter ad at a staff meeting last week. shared.
(Reporting by Akriti Sharma in Bengaluru and Sheila Dang in Dallas)