According to third-party data provided to Reuters, X has experienced monthly ad revenue declines of at least 55% year-over-year since Musk took over in October. The report goes on to specify that ad revenue in August saw a staggering 60% decrease compared to the previous year.
Acknowledging the sharp drop in ad revenue, Musk has tasked X’s Chief Executive, Linda Yaccarino, with meeting with bank lenders who assisted in financing the acquisition. The purpose of the meeting is to keep the lenders informed about the company’s plans moving forward.
During a recent tech conference, Yaccarino revealed that 90% of X’s top 100 advertisers have resumed placing ads, providing a glimmer of hope for the platform’s profitability in the upcoming year.
However, this alteration has caused confusion among users as it lacks the contextual information typically provided by headlines. Many individuals have voiced their concerns about this change.
It is worth noting that this transformation was anticipated, as Musk himself tweeted in August: “This is coming from me directly. Will greatly improve the aesthetics.”
Since acquiring Twitter for $44 billion, Musk has been actively downgrading news content and has encouraged users to write longer posts instead of relying on links in order to enhance engagement.