Twitter loses 50% of advertising revenue

Billionaire Elon Musk - owner of social network Twitter - said that this platform is recording advertising revenue halved.

On July 15, Mr. Musk said Twitter is still having negative cash flow, due to a 50% decrease in advertising revenue combined with a debt burden.

Since taking over Twitter in a $44 billion deal last fall, Mr. Musk has tried to reassure advertisers, many of whom have expressed concerns about a series of layoffs of top executives and employees and new content moderation policies.

In April, Mr. Musk announced that most of the advertisers who left had returned to Twitter and that the company could be cash-flow positive by the second quarter of 2023. In May, Twitter brought in a new CEO, Linda Yaccarino, a former NBCUniversal executive with extensive connections in the advertising industry.

But Twitter users have since complained about new rules like limits on the amount of content on the platform, known as tweets, and some say they have been unable to access the site. Specifically, Twitter is limiting verified accounts to 10,000 tweets per day. Unverified users — the free accounts that make up the majority of users — are limited to 1,000 tweets per day. Musk explained that the restrictions are necessary to prevent the unauthorized collection of valuable data.

Days later, Twitter said TweetDeck, a popular program that lets users follow multiple accounts at once, would only be available to “verified” users starting next month.

Meanwhile, Twitter got a new competitor this July when tech giant Meta launched Threads - a short-form text sharing app similar to Twitter - which reached more than 100 million users in just its first five days of launch.

Twitter is said to have around 200 million active users, but the platform has been plagued by technical glitches since Mr Musk bought it. Mr Musk has threatened to sue Meta for stealing trade secrets and intellectual property – claims Meta denies.

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