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- Twitter executives have told advertisers they must get comfortable with Elon Musk’s unpredictability, according to The Information.
- This has reportedly alienated some advertisers. The largest ad-buying company has cut spending on Twitter by 40%-50%.
- Advertising was by far the most significant source of revenue for Twitter before Musk took over.
Twitter 2.0 under Elon Musk reportedly continues alienating advertising executives as it struggles to hold onto much-needed ad dollars.
According to a report from The Information, GroupM, the world’s largest ad-buying company, has cut spending on the social media platform by 40% to 50%.
Twitter executives are reportedly becoming increasingly desperate to bring in additional revenue as some prior ad spending dries up. Some have even implied to ad buyers that their jobs are on the line unless the buyers spend more on Twitter, the report said.
The downturn in spending comes as Twitter executives have told advertisers – who notoriously prefer uncontroversial content surrounding their ad campaigns – that they need to start getting comfortable with CEO Elon Musk’s unpredictability, The Information reports.
The report comes amid attempts from Twitter to gin up new revenue streams since Elon Musk took over as CEO: late last year, the platform began charging $8 monthly for its Twitter Blue verification process, and on Wednesday, the New York Times reported that Twitter executives are considering an online auction for handles from defunct accounts to raise more funds.
Twitter has been saddled with mounting interest payments it must make after Musk borrowed from banks to buy the company for $44 billion.
Advertising was by far the most significant source of revenue for Twitter before Elon Musk took over in October of last year. Since his takeover, though, some major advertisers like Interpublic Group and IPG advised their clients to pause ads on Twitter.
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