The platform X experiences a decrease in income due to advertisers pausing their spending as a result of Elon Musk’s posts.
Companies are removing their paid advertisements from social media platform X in order to separate themselves from its recent acquisition by Elon Musk.his endorsement of an antisemitic post.
Musk
mentioned in a post
Stating that Jews are guilty of promoting the same type of divisive animosity towards whites that they condemn, and labeling it as “the real truth,” has caused backlash for the speaker from major advertisers on the platform.
Several large corporations, such as Apple, Disney, and Coca Cola, have decided to no longer place advertisements on the platform. This decision could result in X losing out on up to $75 million in revenue, according to a report from The New York Times.
According to Mac, there was a 60% decline in spending during the summer. This decrease in spending is occurring during the crucial holiday shopping season, when retailers typically increase their advertising expenses.
Mac stated that the company would take a significant blow as 90% of its revenue would be affected.
Love-hate relationship
Many companies have a “love-hate relationship” with X, as it is a popular social media platform with a large user base and frequent interactions among its users, making it appealing to advertisers.
When asked for a response, X acknowledged that some brands have halted their advertising spending, but also raised doubts about their reasons behind it.
The company shared that popular brands like Amazon and DisneyPlus have recognized the value of X in connecting with their followers. Instead of paying for advertising, these brands are using their own X accounts to continue engaging with their communities. This decision comes as many companies have chosen to pause or consider pausing paid advertising on the platform.
Musk in May
X has selected Linda Yaccarino, a seasoned advertising executive, as their CEO.
Back in 2006, Twitter (formerly known as Twttr) worked to persuade major companies to rejoin the platform after a hiatus.loss of advertisers after his takeover.
According to Mac, Yaccarino is still under Musk’s supervision and has been restricted in her actions. Mac also believes that Musk frequently discusses X, leading to a need for constant damage control.
Megan Cerullo
Source: cbsnews.com