According to third-party data provided to Reuters, social media platform X, previously known as Twitter, has experienced a consistent decline in its monthly ad revenue in the United States, with each month showing a year-over-year drop of at least 55% since billionaire Elon Musk acquired the company in October 2022.
Since Musk’s takeover, X has faced challenges in retaining advertisers due to rapid changes initiated by Musk’s ownership. In response to these concerns, X’s CEO, Linda Yaccarino, is scheduled to meet with bank lenders who supported Musk’s acquisition to outline the company’s future business plans.
December 2022 witnessed the sharpest decline in U.S. ad revenue, plummeting by 78% compared to the previous year, according to ad analytics firm Guideline, which tracks advertising spending data from major ad agencies. The most recent data available from Guideline, for August, indicates a 60% year-over-year drop in ad revenue. X has chosen not to comment on this data.
Musk has publicly acknowledged the revenue challenges faced by the platform and attributed them to pressure from activists. In a recent statement, he pointed to the Anti-Defamation League (ADL) as a primary cause of the 60% decline in U.S. ad revenue, though he did not specify the time frame. The ADL refuted these claims, asserting that they did not cause losses to X and expressed their intention to advertise on the platform to promote their message against hate.
During an interview at Vox Media’s Code conference, Yaccarino stated that 1,500 brands had returned to the platform in the past 12 weeks, with 90% of the top 100 advertisers re-engaging with X. She also expressed optimism that X could become profitable by early next year.
Musk’s vision for X involves transforming it into an “everything app” akin to China’s WeChat, offering various services beyond social networking. This includes introducing peer-to-peer payment features and increasing the platform’s video content, as previously reported by Reuters. Musk rebranded Twitter as X in July as part of this strategic overhaul.