There’s been a 50 per cent drop in advertising revenue
Twitter owner Elon Musk said the company is losing cash as there’s been a 50 per cent drop in advertising revenue. The Tesla CEO tweeted, the social media platform will “need to reach positive cash flow before we have the luxury of anything else.”
He also said that following a lot of user complaints, the platform will increase the number of tweets verified accounts can see each day by 50 per cent. He also said that the company “Need to reach positive cash flow before we have the luxury of anything else.”
Since Musk acquired the company last year, several advertisers paused spending on the platform over concerns about the changes the billionaire could make. Musk, in April, had said that most of the advertisers who had left the company had returned and that the company might become cash-flow positive in the second quarter. “Almost all of them have either come back or said they’re coming back,” he said on Twitter Spaces. In May, Musk hired Linda Yaccarino, an NBC Universal executive with deep ties to the advertising industry, AP reported.
According to estimates for market research firm Sensor Tower, advertiser spending dropped 89 per cent over two months early this year. CEO of Meta Platforms Inc Mark Zuckerberg,released Threads, a social media platform rivalling Twitter early this month. Threads reached 100 million users in the first few days after its launch. On July 7, Musk said that he would take legal action against Threads as the text-based app violated Twitter’s “intellectual property rights”.
Days before Threads was launched, several Twitter faced backlash from its users after Twitter capped the number of tweets a user could see each day. Initially, the number had been set at 600 for unverified users, and 6,000 for verified accounts. It was then increased to 1,000 and 10,000, respectively. Now, verified users will be able to see 15,000 posts, Elon Musk, however, is yet to confirm this.
After Musk acquired the company in late October 2022, he laid half approximately 50 per cent of the staff from Twitter and introduced Twitter Blue, which allows users to verify their identity for $8 per month, among other changes.