Elon Musk's X platform faces user confusion, ad-revenue drop
Investing.com | Editor Ambhini Aishwarya
Published Oct 05, 2023 08:24
Elon Musk's social media platform, X, has recently faced a wave of user confusion following the removal of article headlines. This change comes as part of Musk's strategy to downgrade news content and improve aesthetics since acquiring Twitter for $44 billion, as reported on Thursday.
The removal of headlines is not the only challenge X is encountering. Reuters reported a consistent ad-revenue drop of 55% since Musk's acquisition last October. The decline peaked at 60% in August, indicating a significant decrease in revenue generation for the platform.
In response to these challenges, X's CEO Linda Yaccarino is making strategic moves to ensure the platform's survival and growth. She announced on Monday that 90% of top advertisers are back on board, showing signs of recovery despite the ongoing issues.
Yaccarino is also planning to meet with bank lenders who financed Musk's acquisition to discuss future plans. This meeting is expected to address the current challenges and set a roadmap for the platform's future operations.
Musk, known for his unconventional strategies, encourages users to write longer posts instead of including links to foster better engagement on the platform. This approach aligns with his vision to shift away from traditional news content and towards enhancing user experience and interaction on X.
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