When Twitter finally removes ads, how will it be handled?
Posted On August 5, 2021
Twitter will soon begin removing ads from its social media platforms, but it’s unclear how this will affect the site’s ad revenue model.
In an announcement on Monday, Twitter CEO Dick Costolo promised that the company will continue to “offer ad-free, ad-supported and sponsored content across the entire platform.”
However, the announcement comes just days after a report that Twitter’s revenue model was under attack by rivals like Facebook and Microsoft.
Twitter has been one of the biggest platforms in the world for years, but its growth has slowed significantly in recent years.
Since 2011, the company has lost roughly 10% of its user base.
Twitter is one of only a handful of companies in the US with a revenue model that relies heavily on advertising, and it’s not clear how much money the company can expect to earn from its current ad-centric model.
As of Tuesday morning, Twitter’s ad revenues were down about 20% from last year.
As such, Twitter has yet to release an official explanation for its revenue model changes.
We’ll update this article with more information as we receive it.
In a post on the company’s website, Costolo stated that “Twitter is not shutting down advertising entirely,” adding that the “Twitter ad platform continues to support ad revenue for users on the platform.”
Twitter will continue advertising on its own platforms, as it has for years.
But Twitter’s advertising revenue model is under attack from rivals like Twitter, Microsoft, and Microsoft, which argue that its ad-based revenue model has gone too far.
Microsoft has also criticized Twitter’s model, arguing that it makes users feel guilty about using its service.
“The revenue model for Twitter’s Twitter advertising has been criticized for its excessive and deceptive ad revenue and the amount of revenue that goes to advertisers on Twitter,” Microsoft’s Andrew Howard wrote in a blog post published in December.
“If this revenue model does not change, Twitter will likely continue to offer its users ad-less ads, which is not in the best interest of its users and advertisers.”
Microsoft has been working on a plan to fix Twitter’s business model for years and it has been successful in the past.
However, it hasn’t had a successful product in the mobile app space.
Earlier this year, Twitter made a $10 billion bet on WhatsApp, and the messaging app lost money every quarter.
The company’s share price also dropped dramatically in the first quarter of 2017, and analysts say the company may have to rethink its strategy if it wants to survive.