A senior Twitter executive said in a presentation to employees that more than 500 of Twitter’s biggest advertisers have suspended spending on the platform since Elon Musk took over the company in October.
Siddharth Rao, a technical manager who oversees engineers working on Twitter’s advertising business, also told employees that the company’s daily revenue was down 40% compared to the same period last year. This underscores the crisis facing the company’s core advertising business.
It should be noted that Elon Musk plans to diversify Twitter’s income in the long term so that advertising is not the only major source of income. But the situation with declining advertising revenues will make it difficult for the company to break even in cash flow in 2023, which Musk predicted 3 weeks ago.
It will all depend on the company’s ability to generate the $3 billion in revenue this year, which Musk said the company had planned for when he took over, as well as the company’s ability to pay $1.5 billion a year in interest on its debt. which he raised to acquire Twitter for $44 billion. Twitter’s revenue in 2021 was $5 billion. This is the latest full-year information obtained from the company’s published financial statements.
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— Elon Musk (@elonmusk) January 17, 2023
At the same time, Elon Musk published on his profile the material of the axios resource, which should inspire confidence in the future of Twitter. It is noted that the company plans to conclude content sponsorship agreements with more than three dozen news agencies, media companies and sports leagues in the first half of this year.
Twitter has a program called Twitter Amplify. It allows broadcast companies to publish videos on Twitter in real time, accompanied by advertisements at the beginning or end of the clip. Broadcasters receive revenue from advertisers and share a portion of that revenue with Twitter.
This year, nearly all major sports leagues, including the NFL, NBA, NHL, MLB, NASCAR, PGA Tour and others, are reportedly planning to host content offerings related to regular season games and sporting events on Twitter. Sports publishers such as CBS Sports, Turner Sports, ESPN, FOX, Univision and Telemundo are also expected to participate in deals related to key sporting events. News outlets such as the Wall Street Journal, NBCU, Reuters, Axios, Bloomberg, Forbes, Conde Nast and USA Today also plan to participate in various Twitter content deals around major events such as the World Economic Forum in Davos, CES and Pride Week. Finally, entertainment and television companies such as NBCU, Paramount and Disney plan to launch content related to various award-winning shows, concerts and prime-time television hits.
Such agreements are expected to offset the loss of direct advertising revenue to some extent.
Twitter will allow political advertising — it was banned in 2019 amid election misinformation
Source: theinformation, axios
