In the month since Musk’s takeover, half of Twitter’s biggest advertisers have gone out of business - 2 minutes read
In the aftermath of billionaire Elon Musk’s rocky takeover of Twitter, it appears that half of the social media network’s major advertisers have stopped using it.
According to a recent report by the left-wing media watchdog Media Matters for America, fifty of Twitter’s top 100 sponsors have stopped advertising on the site as of November 21.
Chevrolet, Chipotle, Ford, Jeep, Kyndryl, Merck, and Novartis, among others, have formally indicated their determination not to advertise on Twitter. Networking Matters’ study identified the remaining firms as “silent quitters,” which meant they had previously promoted on the social media platform but had since stopped for a prolonged period of time.
Another seven firms appear to be decreasing their advertising to almost nil, according to the Media Matters data. The 50 companies that ceased advertising on Twitter accounted for almost $750 million in Twitter spending in 2022 and nearly $2 billion in total income since 2020.
Musk completed his $44 billion purchase of Twitter late last month and has since guided the company through a difficult transition. According to the CEO of Tesla and SpaceX, Twitter experienced a “substantial decrease” in revenue during his first week as advertisers left owing to concerns over content regulation.
“Despite the fact that nothing has changed with content control and we have done everything we could to appease the activists,” Musk added.
Musk let go of more than half of Twitter’s employees in his first week, claiming that he had “no choice” given the company’s catastrophic financial state.
Several hundred more employees resigned when Musk issued an ultimatum asking them to commit to a “hardcore” work environment or quit in mid-November.
The billionaire has also made changes to the social media network, including seeking to establish a paid membership option for Twitter’s blue check verification and reactivating former President Trump’s account. Musk also claimed that more suspended accounts will be restored in the near future.