Twitter, under Elon Musk, is reportedly struggling to retain ad revenue, but advertisers continue to alienate Twitter, and GroupM, the world’s largest ad-buying company, has reportedly cut ad spending on the platform by 40 to 50 percent.
Twitter executives are desperate for new sources of advertising revenue as last year’s confirmed ad placements come to an end. some Twitter employees have even hinted to ad buyers that they may not be able to keep their jobs unless they spend more money on Twitter.
Twitter executives have reportedly told advertisers that for now they will have to adapt to the unpredictability of Musk’s actions as the company’s chief executive. However, advertisers prefer less controversial content when placing ads.
Since Musk became Twitter’s CEO, Twitter has been trying to open up new revenue streams. Late last year, Twitter began charging $8 a month for the Blue V certification service. There are also reports that Twitter executives are considering an online auction of certain blocked accounts to raise more money.
Musk borrowed heavily from banks in the previous deal to buy Twitter for $44 billion, and Twitter is now facing increasing interest payments.
Before Musk took over last October, advertising was the most important source of revenue for Twitter. Since Musk took over, however, major global ad agencies such as Apex and IPG have advised their clients to suspend advertising on Twitter.