"14 of Top 50 Twitter Advertisers Halt Ads After Musk Acquisition"

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Seoyul] It has been reported that major advertisers have stopped advertising on Twitter after Elon Musk acquired the platform.

The Washington Post (WP) cited data from research firm Pathmatics on the 22nd (local time), reporting that among the top 50 Twitter advertisers, 14 companies have not advertised on Twitter since Musk's acquisition.

According to Pathmatics, major advertisers who have stopped advertising include U.S. pharmaceutical company Merck & Company (MSD), food companies Mars and Kellogg, and automobile brand Jeep, with no ads placed since at least the 7th of this month. Musk acquired Twitter on the 27th of last month.

In this regard, food company Mars issued a statement saying, "We began to pause advertising activities on Twitter at the end of September after identifying significant incidents related to brand safety and sustainability."

After acquiring Twitter, Musk has focused on large-scale layoffs and cost-cutting while striving to find alternative revenue sources. However, nearly 90% of Twitter's $5 billion (approximately 6.7 trillion KRW) revenue last year came from advertising, indicating a high dependence on ads.

WP quoted experts saying, "Large corporations use Twitter as a platform to increase brand awareness, but most tend to reduce brand advertising campaigns when the economy worsens or when marketing platforms do not appear to be a solid investment."

Furthermore, WP assessed that advertisers generally tend to increase advertising during the year-end shopping season, and with international events like this year's World Cup, the reduction in advertising comes at an inconvenient time for Twitter.

This content was produced with the assistance of AI translation services.