Elon Musk’s X may lose $75M by year’s end amid advertiser flight
Elon Musk’s X may lose $75M by year’s end amid advertisermarketing spending on the site.
X internal documents revealed more than 200 ads from major brands like Airbnb, Amazon, Coca-Cola and Microsoft that have either halted or considered pausing ad spending.
X said on Friday that $11 million in revenue was at risk, with the exact figure fluctuating as advertisers returned to the platform and others increased spending, the Times reported. Since Musk took over X, ad revenue has fallen at least 55% year-over-year each month, according to Reuters.
X has struggled with advertisers balking at Musk’s cuts to content moderation since his ownership group acquired the company a year ago and took it private.
In a report published by left-wing group Media Matters, the company is accused of running advertisements for major brands alongside pro-Nazi posts and antisemitic material.
Among the brands that halted advertising on the X platform were IBM, Apple and Lionsgate Entertainment.
The CEO of X previously said the social media platform’s system does not intentionally place brands near this type of content, nor do brands actively train to support this type of content.
Further explanation was given by the executive that ads follow people on X. Apparently, Media Matters’ content follows the research that is being conducted, the executive said. As far as the platform itself is concerned, every user and every brand has their own control settings.
Additionally, Musk has feuded with the Anti-Defamation League (ADL) over its claims of rampant antisemitism on X and last week he appeared towith a post that claimed Jewish communities have spread “hatred against whites.”