Following recent debates about Elon Musk and claims of encouraging harmful content, top companies such as Microsoft, Airbnb, and Coca-Cola are in the spotlight as they consider leaving social media advertising.
The New York Times reported this data from within the company. X, before known as Twitter, has captured industry attention. This platform was in the news for suing Media Matters due to harmful content accusations linked to X.
Reports suggest that the social media platform X may lose up to $75 million in advertising revenue by the close of 2023. This financial setback resulted from numerous prominent brands ceasing their marketing campaigns on the platform.
The decision to halt advertising by major industry brands coincides with Elon Musk’s recent concerns about antisemitic content on his social media platform. Previous media reports suggested that major tech corporations, including IBM and Apple, had similarly halted their advertising endeavors on the social media platform X in reaction to the existence of antisemitic content.
Furthermore, internal records recently examined by The New York Times reveal more extensive challenges for the company than previously disclosed. Concerns about Musk and the platform go beyond companies such as IBM, Apple, and Disney, which suspended their advertising on X last week.
The documents outline over 200 ad units from companies including Airbnb, Amazon, Coca-Cola, and Microsoft, many of which have suspended or considered pausing their advertisements on social networks.
Yet, in a statement released on Friday, X indicated that $11 million in revenue was potentially at risk. The precise amount fluctuates due to certain advertisers resuming activity on the platform while others increase their spending.
Elon Musk Impact On Advertising: The Unsettled Landscape Of X’s Platform & Revenue Dips
The company emphasized that the figures examined by The Times needed to be updated or part of an internal assessment designed to evaluate overall risk.
The break in advertising coincides with the last quarter of the year, which is usually the busiest time on social media as companies launch their holiday specials for Cyber Monday and Black Friday.
In the last quarter of 2021, under its previous leadership before Musk took over, the company reported $1.57 billion in advertising revenue, with almost 90 percent attributed to advertising.
Since Musk acquired X for $44 billion last year, certain brands have hesitated to advertise on the platform due to concerns about his behavior and content moderation decisions. This has led to an increase in incendiary and hateful content.
U.S. advertising on the platform has seen a nearly 60 percent decline this year, prompting efforts led by the company’s CEO, Linda Yaccarino, to re-engage advertisers.
Despite running ad campaigns during the holiday season to offset revenue shortfalls, disclosed documents reveal challenges. Over 100 brands are marked as having “fully paused” ads and many others are categorized as “at risk.”
A significant number of pauses occurred around or after Nov. 15, coinciding with Mr. Musk’s statement on X endorsing a conspiracy theory about Jewish people supporting immigration to replace white populations, which he described as “the actual truth.
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