Source: Wall Street News
Author: Lee Siu-yin
Since Musk took over, X's advertising revenue in the US has declined by at least 55% every month.
Advertisers have stopped and started charging users. How can X's financial woes be solved?
According to a recent data from marketing consulting firm Ebiquity,$Tesla (TSLA.US)$CEO Elon Musk (Elon Musk) buys$Twitter (Delisted) (TWTR.US)$Since then, the vast majority of well-off advertisers around the world have stopped advertising on X.
Among the top 100 advertisers with the most spending in the world, Ebiquity's partners account for 70, whileOnly 2 companies advertised on X last month.
Although Ebiquity did not disclose which advertisers it is, according to the latest financial documents, Ebiquity's connected clients include$Alphabet-A (GOOGL.US)$/$Alphabet-C (GOOG.US)$,$Walmart (WMT.US)$,$Vodafone (VOD.US)$(the second-largest mobile communications company in the world) and$General Motors (GM.US)$etc., it is not impossible to arrive at the above conclusion by analyzing the media marketing data of these customers.
Ebiquity Chief Strategy Officer Ruben Schreurs said:
“For any major ad platform, this is a decline we've never seen before.”
However, the X side has a very different sound. In April of this year, Musk said “almost all” advertisers have returned or will return. In an interview last month, X CEO Linda Yaccarino (Linda Yaccarino) said, “In the past 12 weeks alone, 90% of the top 100 advertisers have returned to X.”
Although X has since clarified that “90%” was “90%” of the top 100 advertisers in the previous year, Schreurs said that Ebiquity's analysis triggered”Serious concerns about the credibility of Musk and Yaccarino's public statements”.
In fact, over the past year, many advertisers have stopped or drastically reduced their spending on X because they are concerned about the content they host and the overall reliability and effectiveness of the platform. In July of this year, Musk announced that Twitter had changed its name to “X,” erasing 17 years of brand assets in disguise, further intensifying concerns.
Another analysis by ad analytics firm Guideline found that since Musk took over in April 2022, X's advertising revenue in the US has dropped 55% or more per month.
On the 18th, X released official news saying that in order to reduce spam tweets and bot accounts, X plans to charge new users at $1 per year. If you don't pay, you can only watch but not interact.
Musk also said on Friday that two X platform membership packages will be launched: “One package is less expensive and includes all features, but ads have not been reduced. The other package is more expensive, but there are no ads.”
editor/tolk