Twitter's revenue dropped by 40% after hundreds of advertisers paused their spending.
The massive earning decrease is a big deal for the social media giant, especially since the majority of its revenues come from advertising.
In 2021, 90% of Twitter's revenue (around $5.1 billion) was generated from the spending of its top advertisers.
Now, various sources claim that over 500 of the company's top ad partners halted their spending ever since Elon Musk took over the company.
Twitter's Revenue Drops by 40%!
According to The Guardian's latest report, advertisers are leaving Twitter because of numerous issues.
One of these is the worsening hate speech on social media platform. Aside from this, they are also concerned about the rising number of fake accounts.
Search Engine Journal provided some of the ad companies that are pulling out of Twitter.
These include Omnicom and Interpublic Group ad-holding firms.
Aside from them, GroupM, the world's most prominent ad-buying company, also recommended its clients reduce their spending because Twitter is now a high-risk company.
On Tuesday, Jan. 17, a Twitter senior manager shared the effects of the halted spending of advertisers.
He said that the revenue of the company dropped by 40% compared to what it earned on January 17, 2022.
As Twitter's financial problems worsen, many rumors claim Elon Musk could file for bankruptcy to prevent the company from closing.
But, this will remain speculation until the billionaire confirms it.
Twitter Auctions Office Assets
As of press time, Twitter is conducting cost-cutting efforts to lessen its revenue drops.
But, the social media company also considers selling some of its assets just to gain earnings.
NPR reported that the Twitter headquarters in San Francisco decided to auction its surplus corporate office assets.
These include a blue neon sign of Twitter's bird logo ($22,500), the planter sculpture with the shape of "@" ($8,250), as well as a Twitter bird statue ($20,500).
Although Twitter is struggling financially, the social media giant still makes efforts to enhance user experience.
One of these is making the Twitter Blue Check subscription service more affordable.
We also reported that the Twitter Coins feature is already in development.
For more news updates about Twitter and other online platforms, keep your tabs open here at TechTimes.
