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Why Twitter’s Advertising Business Faces Longer Down Times

Twitter owner Elon Musk recently said advertisers are returning to the social media platform. However, despite his optimistic outlook, many businesses and research firms have yet to see a significant bounce-back in Twitter’s advertising business.

Musk told BBC that businesses are “roughly making even.” The social media platform experienced a decline in advertising since Musk’s acquisition in late October. But why will Twitter face longer times? Here are some ideas.

Decrease in User Engagement

One of the main reasons Twitter’s advertising business is facing more extended downtimes is a decrease in user engagement. Twitter has been struggling to keep users engaged on the platform, resulting in a decline in active users.

According to a report by IT World Canada, Twitter is expected to lose 32 million users by 2024. The decline in user engagement has impacted Twitter’s ability to attract advertisers. Even Twitter’s top advertisers before the acquisition are not on top anymore.

The Decline in Ad Revenue

The decrease in user engagement has also resulted in a decline in ad revenue for Twitter. Despite Musk’s unblocking and unsuspending accounts, Twitter’s ad revenue has declined for the past few years, and the trend is expected to continue.

In the first quarter of 2021, Twitter’s ad revenue was $899 million, a decrease of 11% compared to the same period in 2020. The decline in ad revenue is a significant concern for Twitter, as it is the company’s primary revenue source.

Competition from Other Social Media Platforms

Another reason why Twitter’s advertising business is facing more extended downtimes is due to competition from other social media platforms. Platforms like Facebook and Instagram have a more extensive user base and offer more robust advertising options.

Advertisers will likely choose these platforms over Twitter, as they offer a better return on investment. There are also other more effective social media platforms like TikTok, investing in audio and visual cues to attract people into absorbing the content better.

Ad Boycotts

Twitter has also faced several ad boycotts in recent years, which has impacted the company’s advertising business. Advertisers have boycotted Twitter due to concerns over hate speech and misinformation on the platform. In 2020, several major brands, including Coca-Cola and Starbucks, suspended their advertising on Twitter as part of the #StopHateForProfit campaign. This boycott resulted in a significant loss of revenue for Twitter and highlighted the need for the company to address concerns over hate speech and misinformation on the platform.

Lack of Innovation

One of the criticisms leveled at Twitter is its lack of innovation. The platform has been slow to introduce new features and improve the user experience, impacting user engagement. Twitter has also been slowly introducing new advertising options, making it less attractive to advertisers. To compete with other social media platforms, Twitter must introduce new features and advertising options to attract users and advertisers.


Twitter’s advertising business is facing more extended downtimes due to several factors, including a decline in user engagement, ad revenue, competition from other social media platforms, ad boycotts, and a lack of innovation. Twitter must address these issues and introduce new features and advertising options to attract users and advertisers. While Elon Musk’s statement about advertisers returning to Twitter is encouraging, the company still has a long way to go to regain its position as a leading social media platform for advertisers.

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