Twitter sees ad spend fall more than 70% in December

Twitter sees ad spend fall more than 70% in December

Ad spending on Twitter took a drastic hit in December following Elon Musk’s acquisition of the social media platform.

Data from an advertising research firm showed that top advertisers cut their spending by 71%.

According to data from the Standard Media Index (SMI), ad spend on Twitter in November fell 55% from last year.

That was the same month that Musk restored suspended accounts and launched a paid account verification that resulted in scammers posing as corporations, according to research firm Pathmatics.

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Elon Musk wearing a jacket and a phone showing the Twitter logo behind him

In this photo illustration Elon Musk is shown with a Twitter logo displayed on a smartphone screen. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images/Getty Images)

At the time, two large advertising companies advised clients to temporarily pause their paid advertising on Twitter.

That came at a time traditionally known for increased ad spend as brands promote their products during the holiday season.

The recent data from SMI comes as Twitter is moving to reverse the exodus of advertisers.

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The Twitter headquarters building

Low angle view of the logo sign on the facade of the headquarters of the social network Twitter in the South of Market neighborhood of San Francisco. ((Photo by Smith Collection/Gado/Getty Images) / Getty Images)

Twitter has introduced initiatives, offering some free ads, lifting the ban on political advertising and allowing companies more control over the positioning of their ads.

Twitter did not immediately respond to a Reuters request for comment.

Fourteen of the top 30 advertisers on Twitter stopped all advertising on the platform after Musk took office on Oct. 27, according to Pathmatics estimates.

At a November event, Musk addressed the issue of companies pausing ads, saying he understands if advertisers “want to give him a minute.”

Twitter logo on a phone

In this photo illustration a Twitter logo is displayed on a smartphone screen. ((Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images) / Getty Images)

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Twitter’s fourth-quarter revenue fell about 35% year-over-year due to a drop in advertising and technology-focused posting, Information reported.

Advertising accounted for 89% of Twitter’s $5.08 billion revenue in 2021.

Reuters contributed to this report.

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