Tag: ad revenue

Elon Musk’s X Could Lose Nearly $75 Million in Ad Revenue by Year-End: Report

Elon Musk-owned social media company X could lose as much as $75 million (nearly Rs. 625 crore) in advertising revenue by the end of the year as dozens of major brands pause their marketing campaigns, the New York Times reported on Friday.

Musk backing an antisemitic post on the platform last week has led several companies including Walt Disney and Warner Bros. Discovery to pause their advertisements on the site formerly called Twitter. 

X has struck back and sued media watchdog group Media Matters, alleging the organization defamed the platform with a report that said ads for major brands including Apple and Oracle had appeared next to posts touting Adolf Hitler and the Nazi party. 

Internal documents viewed by The New York Times this week list more than 200 ad units of companies from the likes of Airbnb, Amazon, Coca-Cola and Microsoft, many of which have halted or are considering pausing their ads on the social network, the report said. 

X said on Friday $11 million (nearly Rs. 92 crore) in revenue was at risk and the exact figure fluctuated as some advertisers returned to the platform and others increased spending, according to the report.

The company did not immediately respond to a Reuters request for comment. 

Advertisers have fled X since Musk bought it in October 2022 and reduced content moderation, resulting in a sharp rise in hate speech on the site, according to civil rights groups.

The platform’s US ad revenue has declined at least 55 percent year-over-year each month since Musk’s takeover, Reuters previously reported.

© Thomson Reuters 2023

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Twitter to Share Ad Revenue With Some of Its Content Creators, Says Elon Musk

Twitter will start sharing revenue from advertisements with some of its content creators, Chief Executive Elon Musk said on Friday.

Effective Friday, revenue from ads that appear on a creator’s reply threads, will be shared. The user must be a subscriber of Blue Verified, Musk said.

Musk, however, did not give details about the portion of revenue that would be shared with users.

 

Twitter has seen advertisers flee amid worries about Musk’s approach to content moderation rules, impacting its revenue.

Days after taking charge of the company, Musk said Twitter had seen a “massive” drop in revenue and blamed activist groups for pressuring advertisers.

As Twitter CEO, Musk has focused on reducing costs and introducing new plans for Twitter Blue subscription service, which offers the sought-after “verified” badge.

Separately, Musk said on Friday that legacy Blue Verified would be scrapped in a few months as it was “deeply corrupted”.

A few days back, it was reported that the microblogging site is working on ways to introduce payments on the social media platform. A news report was stated saying that Twitter has begun applying for regulatory licenses for the process. 

Ever since his takeover, Musk has been pushing Twitter to create new streams of revenue. The company has faced quite a drop in advertising income, following his $44 billion (roughly Rs. 3.6 lakh crore) takeover of the company in October.

Musk had previously also stated that the Twitter acquisition would be part of a master plan to create “the everything app”. This app, according to the billionaire, would offer social networking, peer-to-peer payments and e-commerce shopping.

© Thomson Reuters 2023

 

 

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