Twitter’s advertising revenue for the current week is 80 percent below internal expectations.
Twitter’s advertising revenue has fallen below expectations this week. PDO
Twitter’s advertising revenue has collapsed significantly this week, reports The New York Times.
Sources who spoke to the newspaper reveal that Twitter’s advertising revenue this week is 80 percent below internal expectations.
At the same time, Twitter quickly cut its earnings forecasts. The company previously predicted that it would generate $1.4 billion in the last three months of the year, but the target was suddenly lowered to $1.3 billion, and then to $1.1 billion, sources who spoke to the NYT reveal.
The current owner of Twitter Elon Musk did not respond to NYT’s interview request.
Advertisers’ ceiling
Musk has repeatedly warned that his social media company faces serious financial problems. The reason is that Twitter is threatened with a huge loss of advertising revenue.
According to statistics, Twitter’s advertisers have decreased significantly since April, when Musk first announced that he would buy the company. In March, the company had 3,900 advertisers, which were significant. By August, there were only 2,300 advertisers left, and in September there were 2,900 advertisers.
According to the NYT, up to 90 percent of Twitter’s revenue comes from advertising revenue.
The reason for the loss of advertisers is not clear. Advertisers have considered, among other things, the company’s information security and moderation.