Twitter Inc (NYSE:TWTR) has seen daily revenues slump after hundreds of advertisers quit spending on the platform in response to Elon Musk’s takeover last autumn.
Pfizer Inc (NYSE:PFE), Ford Motor Company (NYSE:F) and Meta Platforms Inc (NASDAQ:FB) are among 500 companies which have quit advertising on the social media platform since Musk’s US$44bn takeover was completed in October, according to senior engineering manager Siddharth Rao.
As a result, revenue was down some 40% on January 17, compared to the same day last year, Rao told staff in a meeting on Tuesday.
Elon Musk suggested companies are missing an “incredible opportunity” that Twitter provides, tweeting about the app's advertising potential on Tuesday.
Companies in general are missing the incredible opportunity that Twitter provides to reach customers.
Just Tweet interesting things! That’s all it takes. https://t.co/XTzhNNwgt6
— Elon Musk (@elonmusk) January 17, 2023
Falling revenue adds to a growing list of issues for the company, which was already facing losses of US$4mln a day last year, according to Musk, leading to the sacking of half of its workforce.
Pressure has mounted on advertisers to leave the site since Musk’s takeover, which also saw him hint towards potential changes to Twitters content moderation policies.
Civil rights coalition Stop Toxic Twitter has repeatedly hit out at advertisers and Twitter, warning: “Until Musk can invest in and prioritize teams that can robustly enforce Twitter’s existing community standards, the platform is not safe for users nor advertisers.”
Despite this, much had "stayed the same” come November, according to Yoel Roth, former head of Twitter’s trust and safety team – which has subsequently been disbanded.
“As long as 90% of the company’s revenue comes from ads, Twitter has little choice but to operate in a way that won’t imperil the revenue streams that keep the lights on,” Roth commented.
Musk has confirmed he will quit as Twitter chief executive, following a public vote which saw users oust him, but when this will happen and who will replace him remains to be seen.
Most recently, Musk moved to relax political advertising on the platform which could allow specific causes to be more easily broadcast.
He had also banned the accounts of several journalists who cover Twitter, and Musk's other companies Tesla Inc (NASDAQ:TSLA) and SpaceX, allegedly due to data sharing fears.
Musk later backtracked on a plan to effectively ban other social medias being promoted on the site.