X Ad Revenue Drops 55% Since Musk Takeover
X’s ad revenue has dropped by 55% year-on-year since Musk’s acquisition in October 2022.
X, formerly known as Twitter, has seen its ad revenue drop by 55% each month in the period from October 2022 to October 2023, when compared to the same period the previous year.
The sharpest drop came in December 2022, which was 78% down from the same period the previous year.
Elon Musk bought Twitter for $44 billion in October 2022, rebranding it to X in July of this year.
Affiliate Flash’s Take:
Why is this happening?
Musk has acknowledged the revenue hit the platform has endured but has attempted to blame activists, such as the Anti-Defamation-League, for putting pressure on advertisers.
The unstable nature of X’s first year under Musk’s ownership, in addition to some of his outspoken and controversial opinions, is a more likely reason why so many advertisers left the platform.
Recently at the Vox Media Code Conference, X’s chief executive Linda Yaccarino said that 1,500 brands had returned to the platform in the last 12 weeks and that 90% of the top 100 advertisers were back on board.
She also added that she expects the platform to turn a profit next year.