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A comment on Twitter’s U.S. Ad Sales Plunge 59% as Woes Continue. Parent comment

Re:Twitter’s U.S. Ad Sales Plunge 59% as Woes Continue by paulsutter on Monday June 05, 2023 @09:23AM (#36195850)
Their revenue is massively larger than the cost to run their servers (I used to run 3000 physical servers with a small team, it doesn't cost much)

> advertising revenue for the five weeks from April 1 to the first week of May was $88 million

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Re:Twitter’s U.S. Ad Sales Plunge 59% as Woes Continue by dragontamer on Monday June 05, 2023 @09:36AM (#36195990)
Ad revenue is mostly tied to sales people talking with big companies, addressing their issues.

For example: Southwest airlines has a huge number of advertisements across the internet. But Southwest doesn't want these advertisements to appear next to airport disasters. This kind of "custom request" is the bulk of $Millions+ revenues. You need to constantly cater to these company's seemingly arbitrary requests as they try to protect their brand.

Twitter fired the team that did this. And when they did, the big companies that care about their image left.

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Re:Twitter’s U.S. Ad Sales Plunge 59% as Woes Continue by saryant on Monday June 05, 2023 @11:21AM (#36197514)
You’re off by a couple orders of magnitude on what it takes to run Twitter.
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Re:Twitter’s U.S. Ad Sales Plunge 59% as Woes Continue by kalleboo on Monday June 05, 2023 @11:24AM (#36197576)
> Their revenue is massively larger than the cost to run their servers

That never seems to matter when big services shut down. It's more about VC-level opportunity cost ("will this give me unicorn-level returns?")

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Re:Twitter’s U.S. Ad Sales Plunge 59% as Woes Continue by rsynnott on Monday June 05, 2023 @11:31AM (#36197720)
Bear in mind that Twitter has other costs. About 13bn of debt from the acquisition, for instance.
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Re:Twitter’s U.S. Ad Sales Plunge 59% as Woes Continue by blitzar on Monday June 05, 2023 @01:37PM (#36199903)
Servers may be cheap to run, but the interest bill on ~20bn of loans is expensive.
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