While Musk remains optimistic about the company’s prospects, internal documents obtained by The New York Times and insights from current and former employees shed light on the concerning state of Twitter’s ad sales.
With advertisers growing increasingly wary of hate speech, pornography, and controversial content on the platform, Twitter’s ad revenue continues to plummet.
There is absolutely no way to be pleased or impressed with the current landscape of Twitter’s advertising business and the uphill battle it faces to regain advertisers’ trust.
The Decline:
The recent financial report from Twitter has shown a significant decline in their advertising revenue for the April-May period this year. The data revealed that the revenue was 59 percent lower than the same period in the previous year, resulting in a total of $88 million.
This is a concerning trend for the company, as they consistently fall short of their weekly sales projections, sometimes even by as much as 30 percent, according to internal documents.
The forecast for June does not bode well either, as it indicates a continued decline with ad revenue expected to be down at least 56 percent compared to the same period in 2022.
This trend could have significant implications for the future of Twitter and its ability to generate revenue. As such, the company may need to consider alternative strategies to overcome this challenge.
Advertiser Concerns:
The current situation on Twitter is causing a lot of worry and concern among advertisers. Many are hesitant to associate their brands with the platform due to the increase in hate speech, pornography, and ads promoting online gambling and marijuana products. This has led to major ad agencies and brands such as General Motors and Volkswagen pausing their ad spending on Twitter.
In addition to these issues, advertisers are also accusing Twitter of cheating in its ad counting practices, which raises further doubts about the platform’s integrity.
It is clear that Twitter needs to address these concerns if it wants to maintain the trust and support of advertisers.
Musk’s Impact:
Since Elon Musk’s acquisition of Twitter and his subsequent takeover as CEO, the company’s advertising business has faced a series of setbacks. Musk’s controversial statements, conspiracy theories, and the reinstatement of barred Twitter users have alienated advertisers and eroded their trust in the platform. The departure of key sales executives further exacerbated the challenges.
The Issues with Child Sexual Exploitation Material:
Twitter is facing a serious issue with the presence of accounts promoting child sexual exploitation material (CSAM) on their platform. Despite efforts to combat this problem, numerous accounts continue to post tweets offering to sell or trade such material.
These tweets use well-known signs, signals, and hashtags associated with CSAM, which highlights Twitter’s failure to effectively address this violation of its rules. The situation is alarming and requires immediate attention from the social media platform to ensure the safety of its users, especially minors. It is crucial that Twitter takes strong action against such accounts and implements effective measures to prevent them from operating on its platform.
The promotion of CSAM is a serious crime and should not be tolerated in any form. Twitter must do its part in preventing such content from being shared on its platform to ensure a safe and secure online environment for all users.
The Role of Linda Yaccarino:
Linda Yaccarino, a highly experienced media executive from NBCUniversal, has recently been appointed as the new CEO of Twitter. There are high hopes that Yaccarino’s expertise in both traditional and digital media will help the platform overcome its current challenges.
However, she is stepping into a difficult situation, with declining ad sales, concerns over brand safety, and several key executives having left the company. Yaccarino’s leadership, strategic vision, and decision-making will be critical in rebuilding trust with advertisers and driving growth in revenue. It remains to be seen how she will approach these challenges, but her appointment has generated much interest and excitement within the industry.
Let’s also be clear here: she is a scapegoat. Musk doesn’t believe she can save the company, but when it crashes and burns, he can blame Yaccarino.
Twitter’s advertising business is at a critical juncture, facing a steep decline in revenue and a loss of advertiser trust. Elon Musk’s tenure as CEO has been marked by controversies and a failure to address crucial issues such as hate speech, pornography, and CSAM.
With the appointment of Linda Yaccarino as CEO, Twitter aims to regain its footing and rebuild its advertising business. The path to recovery will require a comprehensive strategy to address brand safety concerns, improve content moderation, and rebuild relationships with advertisers.
Only then can Twitter hope to revitalize its ad platform and reclaim its position as a leading social media advertising platform.
