3 Interesting Facts About the State of Twitter Advertising

Twitter advertising isn’t dead; it’s just evolving.

Despite playing second (or third, or fourth) fiddle to other social advertising powerhouses, and a few odd headlines (notably involving Elon Musk), Twitter is working to maintain its share of advertising budgets.

Through August 2022, nearly 10,600 companies promoted more than 12,400 brands on Twitter, collectively spending $1.1 billion. However, compared to other major social platforms, Twitter's ad revenue is much smaller. For example, in 2021, Facebook generated almost $115 billion in ad revenue, while Instagram’s ad revenue remained below $30 billion but was growing faster than Facebook’s. Still, more than $1 billion in ad revenue in less than a year is significant, and Twitter’s ad revenue has increased every year since 2011.

Here are three interesting facts about the state of Twitter advertising and what they mean for the future of the platform.

Twitter’s Still Got “It”

Since Elon Musk expressed interest in acquiring Twitter, there has been an uptick in interest from crypto enthusiasts, finance audiences, and Elon loyalists. This has prompted advertisers targeting these audiences to increase their presence on Twitter.

Between January and August 2022, the top advertisers on Twitter came primarily from industries tied to Finance and Entertainment, including Streaming Services, Digital Currency, and Banks. The top-spending category through August, Subscription Streaming Services (such as AppleTV+, HBO Max, Disney+), spent more than $53 million on Twitter. Cryptocurrency advertisers, including Chain and Crypto.com, combined to spend $38 million. Other advertisers included Bank of America, Capital One, and entertainment websites like Daily-stuff.com, Herald Weekly, Kueez, and Parent Influence.

The increased interest in Twitter, driven by media attention, has attracted advertisers as well.

Twitter Has Widespread Appeal

Although it may seem like Twitter is becoming a niche platform for certain companies, the data shows otherwise. Advertisers from Finance and Entertainment accounted for just 19% of Twitter’s total ad investment through August.

Athletic Wear companies, such as Adidas, Fabletics, and Nike, spent more than $25 million on Twitter ads.

This advertising variety suggests two things:

1. 1.Twitter is becoming increasingly popular among advertisers who align with Elon Musk’s persona, and this trend is likely to continue.
2. 2.Twitter ads still have widespread appeal, though on a smaller scale than other platforms, and this is expected to continue as well.

As long as Twitter users continue to exhibit behaviors appealing to advertisers—such as being early adopters of new products—a broad spectrum of advertisers will remain interested.

It’s Go Big or Go Home

Another indication that Twitter advertising is holding on: the advertisers who invested did so in significant ways. During the first six months of 2022, around 200 companies (each spending more than $1 million), including Crypto.com and Intel, accounted for 74% of the platform’s total ad investment. Lowering the threshold to $500,000, these big spenders accounted for 82% of Twitter ad spending.

A handful of companies, including Apple, Meta, MGM Resorts, Progressive, and Warner Bros Discovery, each spent more than $10 million.

This suggests that Twitter remains attractive to advertisers with deep pockets, while smaller advertisers are more cautious. Most Twitter advertisers spent less than $50,000, but these accounted for just 4% of total spending, indicating that many advertisers are waiting to see what happens next.

The Elon Effect

After months of uncertainty, Twitter stockholders officially approved the acquisition by Elon Musk. While this brought renewed attention to Twitter, early signs suggest the move may have negative effects on advertising.

Since the news broke in April, the number of Twitter advertisers has steadily declined. After an initial increase between April and May, the number of advertisers spending on Twitter dropped from 3,900 in May to 2,300 in August. Prior to July, more than 1,000 new advertisers were spending on Twitter each month; in July and August, that number dropped to 200.

This decline likely stems from uncertainty about Twitter’s future and its advertising ecosystem under Musk’s leadership. While continued investment from big brands suggests Twitter will remain relevant, the drop in the number of advertisers, especially new ones, is concerning.

As Musk’s strategy becomes clearer and advertisers respond, the future of Twitter as a social media player will become more apparent.

Growing Pains at an Old Age

Twitter, nearing its 20th birthday, is experiencing growing pains typically associated with younger startups. This is both good and bad: a pivot was necessary for survival, but advertisers are not yet ready to fully commit.

Currently, Twitter and its advertisers are in a waiting game, and only time will tell what the future holds.