Documents accessed by The New York Times disclose a dire financial outlook for Twitter, anticipating a staggering loss of $75 million in advertising revenue by year-end due to campaign suspensions. Over 200 ad campaigns, featuring prominent brands like Airbnb, Amazon, Coca-Cola, and Microsoft, are either halted or contemplating withdrawal from the platform, marking a more challenging situation than initially acknowledged.
Originating from Twitter’s Salesforce X, the documents meticulously track the impact of advertising gaps, projecting potential losses if advertisers refrain from returning. Despite Twitter asserting a $11 million risk on Friday, real-time fluctuations persist as advertisers oscillate between returning and expanding spending.
Since Elon Musk’s acquisition of Twitter for $44 billion last year, advertiser reluctance has surged, fueled by concerns about Musk’s behavior and content moderation decisions. U.S. e-commerce platform ad spending plummeted nearly 60% this year, prompting Twitter’s aggressive efforts to reclaim advertisers.
The internal records reveal over 100 brands have fully suspended advertising, with many opting out post-November 15, coinciding with Musk endorsing an anti-Semitic conspiracy theory. Airbnb has paused over $1 million in advertising, Uber cut $800,000, and major brands like Coca-Cola, Jack in the Box, and Netflix suspended campaigns, with estimated losses reaching $3 million for the latter.
Microsoft subsidiaries’ ad halts may result in a potential $4 million loss in Q4 revenue for Twitter. Amazon, Google, and Netflix’s divisions also suffered considerable setbacks.
Republican presidential candidate Chris Christie condemned Musk’s comments as part of a recent surge in “outrageous hatred” during NBC’s “Meet the Press.” However, Twitter’s CEO Linda Iaccarino attributed the challenges to a Media Matters report, asserting that X stands for free speech and democracy’s essential checks and balances.
Musk, previously highlighting companies continuing to advertise on Twitter, pledged to donate ad and subscription revenue related to the Gaza war to hospitals in Israel and the Red Cross/Crescent of Gaza, including contributions from charities, news organizations, and groups promoting conflict-related content. The controversy surrounding Twitter’s content moderation policies and advertiser exodus underscores the platform’s struggle to navigate the complex intersection of free speech, brand safety, and financial stability.
