MOSCOW: A number of advertising agencies have suspended ad spending on Twitter, concerned about the approach of the social platform’s new owner, billionaire entrepreneur Elon Musk, a British newspaper reported.
Elon Musk is now struggling to retain the scared Twitter Advertisers, which is resulting a huge loss to the company.
According to an analysis by the nonprofit Media Matters for America, 50 of the top 100 advertisers with $750 million in ad spend this year have suspended or announced plans to suspend spending after Musk acquired Twitter, the paper reported Saturday.
The same 50 advertisers accounted for $317 million of Twitter’s $5 billion in 2021 revenue.
At the same time, Omnicom Media Group and Interpublic advised their clients to suspend spending on Twitter, while WPP GroupM raised its risk rating for advertising on the platform to “high risk”, sources told the newspaper.
Citing sources, the paper said that following Musk’s firing, the ad agencies no longer have contact within Twitter’s advertising team and have “received little or no communication in recent weeks,” including feedback on how previous campaigns have performed.
On October 28, Musk completed the acquisition of Twitter, which cost him $44 billion. After the takeover, Musk changed the company’s day-to-day operations, including firing Twitter executives who were responsible for the platform’s privacy and cybersecurity, as well as regular Twitter employees.
Significant changes in policy have caused a wave of concern.
Citing market research data, The Washington Post reported on Wednesday that more than one-third of Twitter’s top 100 advertisers stopped advertising on the social media platform within two weeks of Musk taking over the company.