Monday, 17 April 2023, Bengaluru, India
As per the latest reports, some researchers have done a forecast that speaks about the sudden dip in Twitter’s ad revenue in the upcoming time. The forecast didn’t do much other than hamper Twitter’s image and, indirectly, Elon Musk’s. World’s most renowned social media platform, which also works as a news-centric platform, is not looking healthy since the forecast made by some analysts. The recent doings of Elon haven’t helped the company in any way possible. Changing the company logo for a brief period of time from the traditional blue bird logo to the Doge logo didn’t receive the support Elon was hoping for. A few days after this incident, the traditional blue bird logo was back, and fans of the social media platform rejoiced.
Things have been changing since the recent mass firings taking place across every company, and Twitter was a part of such an outrageous incident. People have started to lose faith in the social media platform as it starts to fall short of the value that people expect from the platform. Researchers at Insider Intelligence predicted a fall of one-third of Twitter’s revenue estimate of $4.74 billion to $2.98 billion. The recent happenings have kept advertisers away from advertising on Twitter. There are many factors that have led to advertisers not trusting the platform for advertising. One major factor is the personal branding of Elon Musk since he took over as the owner of the company.
Elon’s erratic decisions for the company have not been met with satisfactory and comforting beliefs. Ever since the major takeover, people have been cautious of the brand value Twitter exerts.
The principal analyst at Insider Intelligence, Jasmine Enberg, was quoted saying, “The biggest problem with Twitter’s ad business is that advertisers don’t trust Musk.”
She further added to her statement that Twitter needs to work away from Elon’s brand and keep a distance from such situations that leverage the company’s corporate status. It will help bring back trust in the advertisers and probably bring back ad dollars.
The business tycoon he is, Musk is yet to figure out the right way to play his games at Twitter, where people from around the world are connected. After taking over as the owner of Twitter, Musk went ballistic on the company employees as he started his tenure by laying off thousands of office employees. This activity was not appreciated, and many advertisers suspended their activities as a result of the tycoon’s extraordinary task. Another firm to report on this situation was Pathmatics which reportedly confirmed that fourteen of the top thirty advertisers stopped advertising on the platform as a sign of distrust for the social media platform.
Reports further suggest that Musk’s subscription-based usage on the platform won’t make up for the revenue lost in ads. The screen time for Twitter users has also come down to 34 minutes per day, which is half of what TikTok users account for. Reports by Insider Intelligence suggest that the decline in screen time for Twitter users must be due to the technical glitches on the platform and the number of hateful content going through the application. Twitter’s challenges against the likes of TikTok are also a reason why Twitter users have gone cold. Such complications have already hurt the company as its worth has come down from a whopping $44 billion to half of it since the takeover.
Sources – The Times of India
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