Internal documents obtained by The New York Times shed light on Twitter’s dire financial situation, with a projected loss of $75 million in advertising revenue by year-end. The documents, originating from Twitter’s Salesforce X, detail the impact of over 200 ad campaigns from major players like Airbnb, Amazon, Coca-Cola, and Microsoft, many of which have halted or are contemplating suspending their advertising on the platform.
Twitter initially downplayed the risk, stating on Friday that $11 million was in jeopardy, with figures fluctuating as some advertisers returned while others increased spending. Since Elon Musk’s acquisition of Twitter for $44 billion last year, concerns over Musk’s behavior and content moderation decisions have made brands wary of advertising on the platform. U.S. e-commerce ad revenue has plummeted nearly 60% this year, prompting Twitter to undertake initiatives to regain advertiser trust.
The documents reveal that over 100 brands have completely suspended their advertising, with dozens more deemed “at risk.” Notably, the suspension trend intensified after Musk’s endorsement of an anti-Semitic conspiracy theory on Nov. 15, sparking widespread backlash.
Major brands like Airbnb and Uber have ceased significant ad spending, with losses surpassing $1 million and $800,000, respectively. Other household names such as Coca-Cola, Netflix, and Microsoft subsidiaries have also suspended campaigns, contributing to potential fourth-quarter revenue losses for Twitter.
During an internal meeting, X CEO Linda Iaccarino attributed Twitter’s troubles to a Media Matters report, which found ads alongside Nazi content. Iaccarino made no mention of Musk’s controversial endorsement but emphasized Twitter’s commitment to free speech.
In response to mounting criticism, Musk highlighted companies, including the National Football League, continuing to advertise on Twitter. He pledged to donate all related revenue from ads and subscriptions during the Gaza war to Israeli hospitals and the Red Cross/Crescent of Gaza, encompassing funds from charitable organizations and news outlets promoting conflict-related content. The financial fallout from ad suspensions marks a pivotal moment for Twitter, raising questions about its ability to weather the storm and regain advertiser confidence in the face of ongoing controversies.