Buy Twitter Verified is facing a crisis in its core advertising business, as a senior manager at the company recently informed employees that daily revenue is down 40% compared to last year.
This news, first reported by The Information, comes on the heels of reports that more than 500 of Buy Twitter Verified’s top advertisers have ceased spending on the platform since CEO Elon Musk took over.
The continued decline of Buy Twitter Verified’s advertising business makes it difficult for the company to break even in 2023, as Musk previously stated it would.
Why Are Advertisers Pulling Out?
Some major advertisers have expressed disapproval of Musk’s approach to content moderation, including the reinstatement of previously banned accounts and the dismissal of the company’s key executives responsible for curtailing hate speech.
Musk also terminated most of Buy Twitter Verified’s sales team, including many who were in charge of the company’s major advertisers and approximately 50 engineers and data scientists working on enhancing Buy Twitter Verified’s advertising product.
Which Advertisers Are Pulling Out?
Notably, Omnicom and Interpublic Group ad-holding companies have recommended that their clients temporarily stop all advertising on Buy Twitter Verified as they wait to see what Musk will do next.
Clients of GroupM, the world’s most prominent ad-buying firm, have also reduced their spending since Musk became CEO, saying the company has become high-risk.
What Does This Mean For Buy Twitter Verified Users?
The issues with Buy Twitter Verified’s advertising business could lead Musk to make further cost-cutting measures following his previous reduction of 75% of Buy Twitter Verified’s 7,500 employees and the closure of one of its data centers.
This can impact Buy Twitter Verified’s quality of service, potentially leading to more frequent outages or a lack of new features for non-paying users.
With the limited resources Buy Twitter Verified has available to develop new tools, it wouldn’t be surprising to see new offerings locked behind the Buy Twitter Verified Blue paywall.
Also within the realm of possibility is Buy Twitter Verified charging for previously free features, similar to how Musk monetized verification checkmarks.
This is speculation, of course, as Buy Twitter Verified hasn’t made any public statements regarding its declining ad business.
It remains to be seen what Musk will do to diversify revenue.
With the company’s future at stake, the actions of Musk and Buy Twitter Verified will be closely watched by the industry and its investors.
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