An Overview of Twitter's Ad Revenue Losses in the Final Months of 2022

Estimates provided by research firm Pathmatics indicate that top Twitter advertisers cut their spending after Elon Musk's acquisition, the latest blow to the company's main source of income, Reuters reported. 

According to Pathmatics estimates, 14 of the top 30 Twitter advertisers suspended all advertising on the service when Musk assumed leadership on 27 October. From the week before Musk's acquisition to the end of the year, four advertisers cut their spending by between 92 per cent and 98.7 per cent.

Despite increases in expenditure from six of the top 30 companies, overall advertising spending by those businesses plummeted by 42 per cent to an estimated USD 53.8 million for the months of November and December, according to Pathmatics.

Regarding the problem of businesses halting advertisements, Musk stated in a November  on Twitter Spaces that he understands if marketers "want to give it a minute." The simplest way to see how things are changing at Twitter, is to simply use Twitter.

In the three months that concluded on 30 June, Twitter reported a loss of USD 270 million on around USD 1.18 billion in total sales.

According to the Pathmatics projections, Twitter's primary revenue source will continue to be unstable into 2023, with a decline in support from major consumer brands as the key driver.

As per research firm Standard Media Index, which didn't disclose specifics, forward bookings—agreements to lock in future advertisements—were also down for January and February. Twitter is taking action to stop the loss of advertisers.

In an effort to win back advertisers, it has launched a number of programmes, including some free advertisements, the easing of a restriction on political advertising, and giving businesses more discretion over the placement of their commercials.

After spending an estimated USD 1.1 million on Twitter advertisements earlier in the month, Coca-Cola Co. (KO.N) stopped investing in the middle of the month, while HBO's spending fell to just USD 38,000 in December from USD 1.1 million in November, according to Pathmatics.

In accordance with Pathmatics estimations, consumer brands such as Stouffers meal producer Nestle SA (NESN.S) and Heinz ketchup manufacturer Kraft Heinz Co (KHC.O) halted all advertising. 

One of the busiest shopping days of the year, Black Friday, also saw a paucity of Twitter advertising from mass merchant Target Corp (TGT.N) and department store operator Kohls Corp (KSS.N).

However, PepsiCo Inc. (PEP.O) and Apple Inc. (AAPL.O) also raised their spending, per Pathmatics.

Additionally, companies reduced their tweeting. According to a Reuters analysis of the company's primary feeds, Coca-Cola and electronics retailer Best Buy Co Inc(BBY.N) stopped tweeting in November, while Target and Kellogg Co, the creator of Special K cereal, had stopped since October.