In October last year, Elon Musk became the new owner of Twitter. Since then, the short message service has also had problems due to some technical changes – and is losing its attractiveness for advertising partners.
Twitter is seeing a massive slump in its ad revenue. Twitter owner Elon Musk wrote in the online service on Saturday that the company continued to post negative cash flow because advertising revenue fell by around 50 percent. The debt burden is also still high. Twitter needs to achieve positive cash flow “before we can afford the luxury of anything else,” Musk added.
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Twitter is losing its appeal to advertisers
The technology billionaire bought the online service in October 2022 for 44 billion dollars (40.15 billion euros). After that, among other things, he reduced the moderation of the content distributed there – but this is very important for potential advertising customers who want to present their offers in a positive environment.
Other decisions have also put off advertisers, but also many users: At the beginning of July, Musk decided to limit the number of tweets that non-paying users could read every day. In the future, only paying users will be able to use the Tweetdeck application.
The industry observer Insider Intelligence had therefore predicted in May that Twitter will take less than three billion dollars this year – compared to the previous year that would be a slump of 28 percent.
Source: Stern
