At the VivaTech 2023 conference held in Paris, Elon Musk shared an update on the advertiser boycott that hit Twitter following his acquisition of the platform. The controversial billionaire stated that the majority of advertisers who left last year have either returned or expressed their intention to return. However, while the return of prominent brands like Disney, Mondelex, Sky, Kia U.K., and Bank of America indicates a positive trend, Twitter still faces significant challenges in regaining advertisers’ trust and addressing brand safety concerns.

  1. The Return of Advertisers: Elon Musk confidently announced at the VivaTech panel that almost all the advertisers who left Twitter have either returned or pledged their return. Despite his optimistic outlook, data from SensorTower suggests that Disney, often cited as a notable returnee, has consistently maintained advertising spending on the platform. Other prominent brands have also been observed advertising on Twitter in recent weeks.
  2. Decreased Advertising Spending: While some advertisers are back on the platform, it appears their spending levels have not fully recovered. Twitter’s ad revenue has experienced a significant decline, with a reported 59% decrease from 2022. The recent figures from April to May 2023 indicate a concerning drop, suggesting that advertisers may still be hesitant to allocate substantial budgets to the platform.
  3. Increased Usage: Elon Musk highlighted that Twitter is witnessing all-time highs in user engagement, supported by data from Apptopia indicating a 3.3% rise in daily active users compared to last October. This positive trend suggests that despite the challenges, Twitter’s appeal to users remains intact.
  4. Remaining Challenges: Despite the return of advertisers, Twitter still faces significant obstacles. The platform has yet to implement substantial changes to address the presence of questionable content, understaffing, and a lack of effective monetization strategies. Brand safety remains a critical concern for advertisers, and Twitter needs to address this issue to regain their trust.
  5. New CEO’s Role: Elon Musk expressed confidence in Twitter’s new CEO, Linda Yaccarino, emphasizing her understanding of advertisers’ concerns and her ability to address them. However, it remains to be seen whether Yaccarino will have the necessary support and freedom to manage the situation effectively.

While Elon Musk’s declaration about the return of advertisers signals a positive development for Twitter, the platform still faces significant challenges in rebuilding trust and ensuring brand safety. Twitter’s new CEO, Linda Yaccarino, has a demanding task ahead as she works towards addressing advertisers’ concerns. Time will tell if Twitter’s efforts to improve content adjacency and provide a compelling proposition for monetization will be sufficient to reassure the market and regain the confidence of advertisers.

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