Internal documents obtained by The New York Times unveil a significant financial setback for Twitter as it anticipates a staggering $75 million loss in advertising revenue by the end of the year. The documents, sourced from Twitter’s Salesforce X, detail the impact of over 200 ad campaigns, including major brands like Airbnb, Amazon, Coca-Cola, and Microsoft, many of which have either halted or are contemplating suspending their advertising on the social media giant.
Twitter had initially reported a potential $11 million at risk on Friday, a figure subject to fluctuations as advertisers reconsider their stance on the platform. The reluctance of brands to advertise on Twitter intensified after Elon Musk’s acquisition of the company for $44 billion last year, citing concerns about Musk’s behavior and content moderation decisions.
The internal records reveal that over 100 brands have completely suspended their advertising, with dozens more deemed “at risk.” Notably, a significant portion of these suspensions occurred post-November 15, coinciding with Musk’s endorsement of an anti-Semitic conspiracy theory.
Brands such as Airbnb and Uber have halted campaigns worth over a million dollars each, while Netflix, Coca-Cola, and others have also suspended substantial advertising efforts. Microsoft subsidiaries and divisions of Amazon and Google faced potential losses surpassing $4 million, emphasizing the widespread impact of the crisis.
The controversy surrounding Musk’s behavior and endorsements, including anti-Semitic remarks, has led to heightened scrutiny. Despite calls for action and criticism from various quarters, Twitter’s CEO, Linda Iaccarino, made no direct mention of Musk’s actions during an internal meeting, attributing the platform’s troubles to a report by Media Matters. The report highlighted instances where ads appeared alongside posts featuring Nazi content.
In response to the turmoil, Iaccarino asserted, “Giving in to outside criticism or pressure is not how Twitter will operate. We stand in solidarity with those who believe in this fundamental right [free speech].”
Elon Musk, known for calling out companies that continue advertising on Twitter, made headlines as he pledged to donate ad and subscription revenue related to the Gaza war to hospitals in Israel and the Red Cross/Crescent of Gaza. The funding includes revenue from ads purchased by charities, news organizations, and groups promoting conflict-related content. The situation remains fluid as Twitter grapples with the fallout and endeavors to win back advertisers amid these unprecedented challenges.