Social network X never regained the trust of advertisers – revenue fell by 52%

Social network X is still going through hard times – advertisers are still afraid that cooperation with it threatens reputational damage. Since Elon Musk took the company private, it has stopped publishing revenue reports, but last year alone the platform’s advertising revenue fell by 52%, the New York Times writes, citing data from market research agency Emarketer.

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Having decreased by 52%, X’s advertising revenue in 2023 amounted to $1.13 billion, according to Emarketer. This year, such a catastrophic drop is not expected – the social network’s advertising revenue will decrease by only 2.5%, according to the company’s forecast. In June, X management told employees that 65% of advertisers had resumed their campaigns on the platform, but they were likely spending less now than before.

In the US alone, the social network earned $114 million, the New York Times reports, citing internal company documents, which is 25% less than the previous quarter and 53% less than the same period last year. In the third quarter of 2024, the company plans to earn $190 million in its homeland, counting on advertising related to the Olympics, football events and election campaigns. But if this goal is achieved, quarterly revenue will be 25% lower than in the third quarter of 2023.

Despite the turmoil, X CEO Linda Yaccarino, whom Musk hired to turn around the company’s business, remains buoyant. “My goal is to clear the way for all of you to succeed and for X to become a global platform,” she said at a staff meeting with management in May.