Twitter’s advertising revenue reportedly decreased 59 percent between April 1st and early May when compared with last year, due to intense competition from TikTok and Instagram, which are seeing rapid increases in user engagement and advertising revenue growth.
Twitter is also struggling to gain new users. Over time, its user base has been stagnant, losing ground to rival platforms. Furthermore, Twitter has come under scrutiny for how it handles misinformation and hate speech on its platform; advertisers may fear associating themselves with such content by advertising with them on Twitter.
Twitter is experiencing various challenges, and it remains unclear how the company plans to address them. Reports indicate they are considering various options – such as selling to another company – however it could also turn around on its own if it can address issues plaguing it and restore advertisers’ trust.
Here are some reasons for Twitter’s declining ad sales:
- Increased Competition From Other Social Media Plattforms
- With Stagnant User Growth
- Criticism Of Handling Misinformation And Hate Speech On Social Media
- Advertisers Wary to Spend on Twitter
Twitter is experiencing various difficulties, yet it could turn things around with some work on its part. With its strong brand and significant user base, Twitter could win back advertisers’ trust if it can address issues plaguing it.