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NEW YORK/LONDON: Twitter’s top advertisers cut spending after the Elon Musk acquisition, according to estimates compiled for Reuters by research firm Pathmatics.

Pathmatics estimates that 14 of Twitter’s top 30 advertisers have stopped all advertising on the platform after Musk took office on October 27. Four advertisers cut spending between 92% and 98.7% of his spending from the week before Musk’s acquisition to the end of the year.

According to Pathmatics, advertising spend for the top 30 companies fell 42% overall, reaching an estimated $53.8 million in November and December combined.

According to Pathmatics, the previously unreported Twitter Ads figures are estimates. The company bases its estimates on technology that tracks ads in desktop browsers and Twitter apps and mimics the user experience.

However, the company said these estimates do not take into account the deals advertisers may receive from Twitter, or the trends or accounts advertised. Departmental brands may see higher spending data,” Pathmatics said in an email.

Twitter did not respond to multiple requests for comment.

At a November event on Twitter Spaces, Musk addressed the issue of companies pausing ads, saying he understands if advertisers want to “wait a minute.” He added, “The best way to see how things are evolving[on Twitter]is through Twitter.”

The information, a technology-focused publication, cited details shared by Twitter’s advertising executives at a staff meeting on Wednesday, saying that the slump in advertising saw Twitter’s fourth-quarter revenue drop year-over-year by about 10%. reported a 35% decrease.

Twitter lost $270 million in the three months ended June 30, taking total revenue to about $1.18 billion.

Heading into 2023, Twitter’s primary revenue stream continues to undergo a dramatic shift, led by pullbacks from top consumer brands, according to Pathmatics estimates.

Pre-orders, or deals that lock in future ads, were also down in January and February, according to research firm Standard Media Index, which declined to provide details.

Twitter is on the move to reverse the advertiser outflow. We have introduced a number of initiatives to win back advertisers, including offering free advertising, lifting the ban on political advertising, and giving businesses more control over where their ads appear.

Molly Lopez, owner of advertising agency HITE Digital Miami, said:

In addition, Mark DiMassimo, founder of New York-based advertising agency DiMassimo Goldstein, said that Meta Platform Inc.’s Facebook-spending “bargain” direct marketers and political action committees have been criticized for their ad campaigns. He said it could fill the gap.

Coca-Cola Co stopped spending in mid-November after buying an estimated $1.1 million in Twitter ads earlier that month, while HBO’s spending jumped from about $1.1 million in November to $1.1 million in December. Pathmatics found it to be down to about $38,000.

Coca-Cola declined to comment. HBO spokesperson Chris Willard declined to comment on specifics of the advertising spending, but said it would “evaluate the platform under new leadership and determine appropriate next steps.”

Among consumer brands, Heinz ketchup maker Kraft Heinz and Stouffer’s meal maker NestlĂ© SA have stopped all advertising, Pathmatics estimates. Heinz and NestlĂ© declined to comment.

Mass retailer Target and department store Kohl’s are also estimated to have skipped advertising on Twitter on Black Friday, one of the biggest shopping days of the year. Coles did not return requests for comment.

However, according to Pathmatics, Apple Inc and PepsiCo Inc increased their spending.

Apple did not respond to a request for comment. PepsiCo declined to comment.

Financial technology providers SmartAsset and Inc said Pathmatics’ estimates of increased advertising were inaccurate. Amazon didn’t elaborate further, and SmartAsset said the numbers were “inflated” without divulging details.

brand safety

Musk’s entry into Twitter exacerbated a decline in advertising that began in September. After Reuters reported that the promotion appeared alongside tweets soliciting child pornography.

Most businesses stopped spending in November, according to estimates. This is the same month that Musk restored suspended accounts and released verification for paid accounts where scammers impersonated businesses.

Telecom company AT&T Inc and pet food provider Mars Inc cut spending in September over brand safety concerns.

According to Pathmatics, both companies pulled back from Twitter, but kept advertising on Meta Platform Inc’s Facebook and Instagram, and short-video app TikTok, and in some cases stepped up publicity.

Meta and TikTok did not immediately return requests for comment.

Graphics: Some advertisers are cutting spending or leaving Twitter after Musk acquisition ( dwpkdadqrvm/graphic.jpg)

AT&T said it suspended ads in September due to “concerns about what content is shown next.” A person familiar with AT&T’s thinking said the company has addressed its concerns on his Twitter account.

Mars said its “suspension remains in effect.”

Twitter told Reuters it is investing in child safety. The platform uses automation to moderate its content and limit abuse-prone hashtags and search results in areas involving child exploitation.

Businesses have also scaled back their tweets. As of Jan. 19, Target and Special K serial maker Kellogg Co said he hadn’t tweeted since October. Coca-Cola and electronics retailer Best Buy stopped tweeting in November, according to a Reuters review of the company’s main feed.

Target, Best Buy and Kellogg did not respond to requests for comment. Here’s how much advertising revenue Twitter lost in the final month of 2022.

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