Ad spending on Twitter down 71% since Elon Musk took over

Advertising research firm shows that top advertisers slashed their spending by 71%.

Ad spending on Twitter fell 55% from last year, according to the Standard Media Index SMI data.

In the same month, Musk restored suspended accounts and released a paid account verification that resulted in scammers impersonating corporations, according to Pathmatics.

At the time, two large advertising companies advised clients to pause their paid advertising on Twitter.

Ad spending was higher during a time when brands promote their products during the holiday season.

The recent data from SMI comes as Twitter is trying to reverse the advertiser exodus.

A ban on political advertising and the ability to control the positioning of their ads have been introduced by Twitter, which has included some free ads and allowing companies greater control over placement of their ads.

Fourteen of the top 30 advertisers on Twitter stopped advertising on the platform after Musk took over on October 27 according to Pathmatics estimates.

The Information reported that Twitter's fourth-quarter revenue fell by 35% year-over-year due to a slump in advertising and technology-focused publications.

Advertising accounted for 89% of the $5.08 billion revenue on Twitter in 2021.