Twitter lost over 500 top advertisers in roughly three months

Twitter is reeling financially since Elon Musk took over. The company’s revenue is down as several firms paused advertising due to concerns over the platform’s new content moderation policies. A senior employee reportedly delved out numbers that paint a gloomy picture of the company’s revenue.
Citing a person with direct knowledge of the matter, The Information reports that a senior Twitter manager told employees that the company’s daily revenue on Tuesday (January 17) was 40% lower than the same day a year ago.
Siddharth Rao, an engineering manager overseeing the engineers working on Twitter’s ad business, also reportedly told employees that over 500 of Twitter’s top advertisers have paused spending on Twitter since Musk took over in late October.

Why advertisers left Twitter?
Multiple reports suggest that since Musk’s acquisition, corporate advertisers fled the platform after the billionaire laid off thousands of employees and started charging a sum for blue tick. This resulted in scammers impersonating companies, damaging Twitter’s reputation.
Furthermore, the social media platform reversed its 2019 ban on political ads, relaxing norms for “cause-based ads” in the US. Musk also promised to make a new council for content moderation but the company is still in the process of setting up the group. Multiple reports in the past have suggested that Twitter has seen an increase in hate speech post-Musk purchase.

Twitter gets content sponsorship deals
The development comes at a time when a separate media report claims that more than three dozen media companies are planning for content sponsorship deals on the social media platform.
The content is reported to run on Twitter in the first half of this year during season games and tentpole events. The report also says that “media companies, newsrooms and sports leagues are reaping too much revenue and marketing advantage to quit the platform.”