Shulou(Shulou.com)11/24 Report--

April 14 news, Elon Musk (Elon Musk) said that advertisers are returning to Twitter, but a number of company statements and data from market research companies show that the speed of recovery is not satisfactory.

This week, Mr Musk told BBC that most advertisers were returning to Twitter and that the business had "generally broken even". Advertising revenue on the platform has been falling sharply since he bought Twitter last October.

However, a number of companies that were once the top 10 advertisers of Twitter, including food maker Mondeloz International (which owns Oreos and many other brands), consumer goods companies Unilever and Coca-Cola, are no longer even among the top 50 advertisers in the past two months, according to market intelligence firm Sensor Tower.

Mondelez International, Unilever and Coca-Cola did not respond to requests for comment. Dirk Van de Put, chief executive of Mondelez International, said last fall that he had removed its ads from Twitter because of fears that they would appear next to "wrong messages", including hate speech.

In the past two months, the top 50 Twitter advertisers spent a total of $83 million (currently about 570 million yuan), down from $102 million in the same period last year (CTOnews.com Note: about 701 million yuan), according to CTOnews.com.

Market research firm Insider Intelligence this week cut Twitter's global advertising revenue forecast for this year by 37% to $2.98 billion (currently about 20.473 billion yuan), down 28% from $4.14 billion in 2022 (currently about 28.442 billion yuan).

Since Musk bought Twitter, he has issued a series of fast-changing orders, including layoffs to reduce costs and a subscription service that allows users to pay to validate their profiles.

Previously, ad buyers revealed that some of Musk's controversial tweets on Twitter, some involving conspiracy theories or being involved in racist arguments, also made advertisers uneasy.

At a conference last month, Mr Musk admitted that advertising revenue had fallen sharply and said he had to cut costs quickly. While Musk says most advertisers are returning to Twitter, some important brands say they are not.

A spokesman for AT&T, for example, said the wireless operator suspended advertising in September and has not returned. AT&T was one of the top 33 advertisers before Musk bought Twitter, according to Sensor Tower.

In addition, Volkswagen Group and Stellantis Motors also said they did not resume advertising on Twitter. Mars Foods, on the other hand, said it did not plan to advertise on the platform.

Other companies that were once the top 50 advertisers of Twitter, such as Merck, Google, Kellogg and Facebook parent company Meta, are no longer on the list, according to Sensor Tower. None of these companies responded to requests for comment on their advertising spending.

Jasmine Enberg, chief analyst at Insider Intelligence, said: "because of his past behavior, many advertisers do not trust Musk or do not want to have anything to do with him."

According to Similarweb, a market research firm, web traffic on Twitter's advertising portals fell 18.7 per cent in March from a year earlier. The site allows customers to set up and buy ads on Twitter.

Similarweb said in a blog post that Twitter's advertising business was being "eroded", while the success of its subscription service Twitter Blue was only moderate.

Enberg said that at a time when companies are cutting or re-evaluating advertising spending, Twitter needs to compete with other platforms for more advertising revenue. "they spend on the platform that they think has the highest return on investment, and Twitter has never been such a platform," she said. "

Snap said in January that bad economic conditions could lead to a drop in revenue in the first quarter. Similarly, Google's parent company, Alphabet, reported disappointing quarterly results in February as advertisers cut their budgets. Alphabet and Snap declined to comment.

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