According to digital marketing research firm Pathmatics, Twitter’s top advertisers are declining. This decline can be attributed to a number of factors, including increased competition, changes in the advertising industry, and an advertiser exodus following Elon Musk’s acquisition of the company.
For several years, Twitter’s top advertisers have been declining, and this trend is expected to continue. According to Pathmatics estimates based on data through January 25, 625 of the top 1,000 Twitter advertisers, including major brands such as Coca-Cola, Unilever, Jeep, Wells Fargo, and Merck, had pulled their ad dollars as of January.
This decline poses a significant challenge for Twitter, which is heavily reliant on advertising revenue to support its growth and profitability. As an example, consider the following: According to the data, monthly revenue from Twitter’s top 1,000 advertisers fell by more than 60% from October to January 25, from around $127 million to just over $48 million. The data show a precipitous decline in what was once a $4.5 billion advertising business for Twitter.
Twitter is investing in new advertising technologies and partnerships to address this challenge. The company is also working to improve the user experience and expand into new markets. These initiatives are intended to bring more advertisers to the platform and increase revenue.
The sources for this piece include an article in CNN.