Twitter in trouble? Over 500 advertisers quit the platform after Musk takeover
Over 500 advertisers have reportedly either pulled or paused their presence on Twitter following Elon Musk’s takeover of the website last autumn, according to a report by The Information.
Major spenders including General Mills, Pfizer, Audi, Volkswagen and Mondelez are among some of the big names to have stopped advertising on Twitter since Musk’s took the helm last October, the report said.
On 17 January 2023 the social media company’s daily revenue was 40 per cent lower than on the same day a year ago, the report added.
Advertisers cited Musk’s reinstatement of suspended accounts and radical policy changes, including allowing political advertisers to return to the site, as some of the reasons for pulling their adverts.
Layoffs and apparent security breaches have only exacerbated Twitter’s challenges.
Professor Julia Binder at the Institute for Management Development told City A.M. that Musk’s recent actions have brought his abilities to lead a business into question at both Tesla and Twitter.
“From a shareholder perspective the unpredictability of Musk’s decisions, many of which are driven purely by his emotions and not rational considerations, have raised important doubts in his abilities as a CEO,” she said.
Twitter did not responded to a request for comment.