Twitter faces a 40% revenue drop as advertisers exit, The Information.
Over 500 Twitter advertisers reportedly stopped spending money on the microblogging platform. A Reuters inquiry for comment received no immediate response from the business.
The technology newsletter Platformer noticed a dramatic drop in sales on Tuesday.
Since Elon Musk acquired control of Twitter in October of last year, advertisers have gradually stopped using the service in response to the billionaire’s weeklong firing of thousands of staff members.
After Twitter recognized they were required to run the business, some of these employees were later summoned back.
The platform also hurried the implementation of a new verification technique, which led to con artists impersonating businesses and generating millions of dollars in damages.
This strategy allowed virtually anyone to mimic a well-known person or business for merely $8 in verification fees.
After being promptly removed from the platform, this contentious version of Twitter Blue later made a triumphant comeback with much-needed changes.
Although Twitter still charges $8 for verification, administrators now manually review the accounts in question.
Additionally, Twitter just lifted its 2019 restriction on political advertisements under the pretext that it would ease its advertising standards for “cause-based ads” in the US.
Additionally, this would match the company’s advertisements with TV and other media.
Due to the company’s failure to pay the office rent for its San Francisco headquarters, Twitter lack nearly half of its revenue and legal issues also occurred.
