- Twitter’s ad revenue is projected to be around $2.5 billion in 2023, a significant drop from over $4 billion in 2022
- Advertisers continue shunning Twitter under Elon Musk due to concerns over content moderation and his controversial tweets
- Loss of ad revenue is a major problem for Twitter, making up 70-75% of total revenue, and may lead to further financial struggles after mass layoffs
Elon Musk took over Twitter in October 2022 and renamed it X. Since then, the company’s advertising revenue has sharply declined compared to previous years.
Ad Revenue Projections for 2023
According to people familiar with X’s finances, the company is projected to bring in roughly $2.5 billion in ad revenue in 2023. This is a significant drop from 2022, when Twitter generated over $1 billion in ad revenue per quarter.
X’s ad sales currently make up between 70-75% of its total revenue. In the first three quarters of 2023, X brought in around $600 million in ad revenue per quarter. It is expecting a similar result in Q4, meaning its total ad revenue for 2023 will be around $2.5 billion.
Advertisers Continue to Shun X
Many major advertisers have paused spending on X since Elon Musk took over, due to concerns over content moderation. Musk himself continues to drive advertisers away with controversial tweets.
This loss of ad revenue is a big problem for X, as ads have historically made up the vast majority of its income. The company laid off about half its staff in late 2022 in an effort to cut costs. But with ad revenue drying up, it may face further financial struggles in 2023.
