Major Advertisers Pull
Out Of ‘X’.
A bad week for X has seen many major advertisers pull out of supporting the platform.
Throughout this week, X faced a series of challenges, primarily related to statements and positions expressed by Musk on various matters. The developments include:
A third-party analysis report suggested that X's efforts to combat misinformation regarding the Israel-Hamas war were insufficient, based on X's own enforcement numbers.
Following this analysis and other reports, the European Commission decided to cease advertising on X, citing widespread concerns about the dissemination of disinformation.
IBM also opted to suspend all advertising on X after a report from Media Matters revealed that X's paid promotions were appearing alongside pro-Nazi material in-stream.
On the same day, Musk endorsed an anti-Semitic talking point on X, linked to various attacks on Jewish people over the years.
In response to Musk's post, several major advertisers, including Apple, Lionsgate, Disney, and others, announced the suspension of their X ad campaigns. The list of advertisers joining the boycott continues to grow.
A federal judge rejected X's attempt to overturn a $150 million FTC fine related to actions under previous Twitter management.
An industry watchdog has urged the FTC to examine X's new ad formats, expressing concerns about insufficient disclosure. This could potentially lead to a new investigation into X's advertising practices.
Affiliate Flash’s Take:
We previously covered how X’s ad revenue had dropped by 55% a year on from Musks takeover in October 2022, and the developments of the last week will only harm the platform's reputation and revenue further.
Many of X’s issues in the past year have been caused by things Musk himself has said and done as much as they have been caused by issues with the platform itself, but Musk has repeatedly stated he has no intention of backing down or compromising on what his vision of X is.
The platform's issues are growing by the day with no sign of stability or resolution in the near future.