Home ยป Decline in Advertising Revenue by Minimum of 55% in the United States Following the Acquisition of Enterprises by Elon Musk

Decline in Advertising Revenue by Minimum of 55% in the United States Following the Acquisition of Enterprises by Elon Musk

According to a report by Reuters, advertising revenue on platform X in the United States has decreased by at least 55% compared to the previous year on a monthly basis since Elon Musk acquired the company in October 2022.

In December 2022, advertising revenue in the United States dropped by 78% compared to the same month in the previous year, marking the largest decrease in revenue since Musk took over the business. This data was tracked by Guideline, a leading advertising data analysis company, which monitors advertising expenditure data from major agencies.

Prior to this, Musk admitted that the company was experiencing genuine revenue issues and apologized to the Anti-Defamation League (ADL), a civil rights group that had raised concerns about advertising content. This led to a 60% decrease in advertising revenue in the United States. ADL stated that the allegations against X that led to the revenue decrease were unfounded.

Linda Yaccarino, the CEO of X, mentioned in an interview at the Code conference that up to 1,500 brands have returned to advertising on the platform in the past 12 weeks. The company is expected to be profitable by 2024.

TLDR: Advertising revenue on platform X in the United States has significantly decreased since Elon Musk’s acquisition, with a drop of at least 55% on a monthly basis. In December 2022, revenue decreased by 78% compared to the previous year. Musk acknowledged the revenue issues and apologized to the ADL, leading to a 60% decrease in advertising revenue. However, the CEO mentioned that numerous brands have returned to advertising on the platform, and the company aims to be profitable by 2024. (Source: Reuters)

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