Business
Twitter’s December 2022 Ad Revenue Tanks by 70%
Twitter’s advertising revenue tanked in December 2022, with ad spending from top brands dipping 71 percent compared to the same period in 2021.
The Standard Media Index (SMI) data comes as big businesses try to exert pressure on Twitter, run by Elon Musk, to reinstate notable conservative accounts that were previously suspended.
Revenue decreased by 55% in November 2022 compared to the same month in 2021, according to data from the same source.
One of the leading advertising agencies in the world, IPG, recommended its clients to “stop” advertising before Musk started restoring blocked accounts because of the likelihood that “unsafe behaviors” would spread on the site.
Twitter’s persistent lack of ad revenue is a big issue because, in 2021, 89 percent of its $5.08 billion in revenue came from advertising. This is probably a significant contributor to Twitter’s enormous estimated value decline.
A crucial cog in the mechanism of online censorship is the boycott of advertising. Businesses have frequently used their financial weight to compel social media sites to adopt ever-stricter censorship measures in the past, usually due to poor media attention.
The “adpocalypse” on Google-owned YouTube in 2017 lost the internet platform hundreds of millions of dollars and prompted it to restrict advertising for independent producers. This incident is only one of several notable examples.
Major firms cut back on their Facebook advertising budgets in 2020 due to media displeasure with the platform’s level of restriction.
The media has long known the power of the advertising sector on social media platforms. Less than two months after Donald Trump was elected president in 2016, the New York Times started lobbying advertisers to stop running advertisements on “fake news” websites, a term that has since been replaced with “misinformation” and was once used to describe practically all conservative media.
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