Elon Musk’s Social Media Platform X Faces $75 Million Loss as Advertisers Pause Campaigns Over Antisemitic Post
X, previously known as Twitter, is facing a growing crisis in advertising. Major companies like Apple, IBM, and Comcast have recently pulled their ads from the platform. A new report suggests that Elon Musk’s social media platform might experience a substantial loss of up to $75 million by the end of 2023 due to the departure of these companies.
The trouble began when reports surfaced about Musk endorsing an antisemitic post on the platform. Musk was seen agreeing with a statement on X that suggested Jewish communities harbor hatred towards white communities. This controversial incident prompted various companies, including Walt Disney and Warner Bros Discovery, to temporarily halt their advertising on the platform, formerly known as Twitter.
X faces advertising woes
X has retaliated by suing media watchdog group Media Matters, claiming defamation over a report that suggested major brands like Apple and Oracle had ads next to posts promoting Adolf Hitler and the Nazi party. Internal documents, seen by The New York Times, revealed over 200 ad units from companies like Airbnb, Amazon, Coca-Cola, and Microsoft, many of which have paused or are considering pausing their ads on the social network.
X mentioned on Friday that $11 million in revenue was at risk, with the exact figure changing as some advertisers returned while others increased spending. Advertisers have been leaving X since Elon Musk’s acquisition in October 2022, coupled with reduced content moderation, leading to a surge in hate speech on the platform, according to civil rights groups. The platform’s US ad revenue has reportedly declined by at least 55 percent year-over-year each month since Musk’s takeover.
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