According to a report by Reuters, which cited the New York Times as its source, Elon Musk’s X Expects to Lose $75 Million Due to a Pause in Advertising as a result of the continued decision of several big corporations to halt their marketing on the platform. It was demonstrated that X cast doubt on the actual income at stake.
According to the New York Times, concerns over Musk and the platform have spread well beyond IBM, Apple, and Disney, who paused their advertising efforts on X last week. These companies are not the only ones that have expressed these concerns. There are indications that about 200 businesses have “fully paused” their advertising efforts, while dozens more are categorized as being “at risk.”
According to the report, internal documents that were seized this week reveal that more than 200 ad units from companies like Airbnb halted over one million dollars in advertising. Uber cut more than $800,000 from its advertising budget, hindering its operations in both local and international markets.
Other prominent companies, like Jack in the Box, Coca-Cola, and Netflix, have also temporarily halted some aspects of their advertising campaigns. X claims that the adverts that were halted on Netflix had a value of around three million dollars. Amazon, Coca-Cola, and Microsoft have all either ceased running adverts on social networks or are mulling about the possibility of doing so.
X’s Contest on Ad Revenue Loss Report
X disputed the real advertisement income that was in jeopardy, as the social media platform said in a statement on Friday that the amount of revenue that was in jeopardy was exactly $11 million, with the actual total shifting as some advertisers returned to the site and others increased spending.
According to the company, the numbers that were seen by The Times were either out of date or part of an exercise to conduct an internal risk assessment.
Musk’s support for an anti-Semitic message post on X back on November 15 declaring that the conspiracy theory of Jews pushing the migration of minorities to replace white people was “the actual truth,” on the platform, is an example of Musk’s support for anti-Semitism. Because of this, several companies, including Walt Disney and Warner Bros. Discovery, decided to pull their advertisements from the website that was originally known as Twitter.
After that, X gave a response by suing the media watchdog group Media Matters, stating that the organization defamed the platform with a report alleging that adverts for major corporations such as Apple and Oracle appeared next to comments praising Adolf Hitler and the Nazi party. X’s lawsuit stated that Media Matters defamed the platform by alleging that the commercials showed next to messages that praised the Nazi party.
According to Variety, the case will be thorough since Musk allegedly stated in a post on X that the legal action will target “their board, their donors, their network of dark money, all of them.” Variety believes that this statement was made by Musk.
X’s Continuous Advertisement Decrease(X Expects to Lose $75 Million )
The delay in advertising occurs during the last three months of the year, which is often the greatest quarter for the social media business as marketers undertake holiday campaigns for events such as Black Friday and Cyber Monday. The company made $1.57 billion in revenues during the last three months of 2021, the final year that the firm disclosed fourth-quarter data before Musk took over as CEO. Advertising accounted for more than 90% of the company’s total revenue during that period.
Since Musk bought X in October 2022 and dropped content monitoring, human rights groups assert that advertisers have abandoned the platform, resulting in a major surge in hate speech on the site. Musk’s purchase of X also lowered the standards for what constitutes offensive material.
According to reports, Leesha Anderson, vice president of digital marketing and social media at Outcast, stated that consumers progressively stopped paying on X after Mr. Musk seized ownership and discovered alternatives on websites such as LinkedIn and TikTok.