Twitter’s Advertiser Woes: Unpacking the Decline
A record number of advertisers plan to pull back from X next year because of concerns over being associated with extreme content. This is a new blow to Elon Musk’s hopes of turning around the finances of the social media group. Twitter, once a vibrant platform for advertisers seeking direct engagement with users, is now struggling to maintain its position in digital advertising. Advertisers have been leaving the platform in droves in recent months, signaling deeper issues within the company. But what’s driving this exodus, and why is Twitter failing to recover?
Big brands have been withdrawing from X, formerly known as Twitter, since Musk’s $44bn takeover in 2022. They cite the entrepreneur’s decision to loosen content moderation in line with his free speech ethos, which has led to revenue declines and a plummet in the company’s value.
1. Brand Safety Concerns
Advertisers prioritize the safety of their brand image. Since the platform’s recent acquisition and policy shifts, Twitter has faced increasing challenges in moderating content effectively. The rise in hate speech, misinformation, and inappropriate content has caused many advertisers to question whether their ads will appear alongside harmful or controversial posts. When brands feel their reputation is at risk, they pull their dollars…