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SOCIAL MEDIA

Advertisers are continuing to stay away from Twitter, report says

By our News Team | 2023

Leaked internal documents show recent ad revenue is nearly 60% down on same time last year and unlikely to improve soon.

The woes continue at Elon Musk-run Twitter, where advertising revenue continues to plunge despite management’s predictions of an upturn.

According to a report published in the New York Times newspaper on Monday, income from advertising in the key United States market was down by 59% for the five weeks from 1 April 2023 to the first week of May 2023. 

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This is by comparison with the same time last year, which was prior to the chaotic takeover by Musk.

The Times based its report an internal Twitter presentation seen by its reporters, as well as on information obtained from unnamed Twitter employees, past and present.

“The company has regularly fallen short of its US weekly sales projections, sometimes by as much as 30%, the document said. That performance is unlikely to improve anytime soon, according to the documents and seven current and former Twitter employees,” the report published in The Times says.

It adds that Twitter’s internal expectations are for advertising income from the US market to consistently be down at least 56% each week compared with a year ago.

A global slowdown in social media advertising

Advertising on the big social media platforms around the world has slowed in recent times – the main reason for employee layoffs at the likes of Facebook, Instagram, LinkedIn and others – but in Twitter’s case there are also unique reasons related to the Musk takeover and subsequent change of strategic direction. Advertising has typically comprised around 90% of Twitter’s total income.

“Twitter’s ad sales staff is concerned that advertisers may be spooked by a rise in hate speech and pornography on the social network, as well as more ads featuring online gambling and marijuana products,” The Times said, quoting its sources within Twitter.

Among the big global brands that are known to have paused their advertising on Twitter are General Motors and Volkswagen.

“Essentially, as it stands right now, despite Musk’s efforts, Twitter still needs a lot of ad dollars to keep running, or it’ll run the risk of going out of business – even with 80% fewer staff to pay,” the online publication Social Media Today commented.

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.