Before Elon Musk’s acquisition, Twitter was already facing alarming projections of a more than 50% year-over-year revenue decline by October 2022. Despite the leadership changes, the platform seemed unable to rectify its poor financial performance. . There were early signs that advertisers were losing confidence in Twitter’s direction, even before the deal was closed.
CEO Elon Musk’s nascent tenure has been defined by chaos. However, the ramifications escalated dramatically after Musk openly agreed with an anti-Semitic conspiracy theory tweeted by another user. This led to more than 100 companies to suspend advertising on Twitter for fear of brand safety. Musk responded by threatening legal action against the watchdog group Media Matters for America for reporting on ads that appear alongside hate speech. Additionally, he can also read about: Elon Musk continues to dominate Twitter despite the appointment of new CEO Linda Yaccarino
These events have highlighted deeper flaws in Twitter’s advertising mechanisms. Analysts believe the platform faces irreversible damage to its reputation for enabling misinformation and extremism under Musk. Advertisers expect more ethical governance of social media. By promoting intolerance, Twitter loses credibility and risks permanently losing a portion of its advertising revenue.
Experts following the situation are revising their projections to predict losses of more than 60%-70% of Twitter’s $5 billion ad business compared to 2021. This raises serious questions about Twitter’s viability as a publicly traded company. . Difficult decisions may be required to avoid a total collapse.
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Categories: Technology
Source: vtt.edu.vn