Emmanuel OchayiPopular social media platform owned by Elon Musk, X (formerly Twitter), confronts a daunting financial blow as major brands halt ad campaigns in response to Musk’s controversial social media activity which has the potential of the company losing $75 million.
The fallout from Elon Musk’s endorsement of an antisemitic post on X, the platform, has sent shockwaves through the advertising world. A New York Times report unveils the impact: a potential $75 million loss in advertising revenue by year-end due to the suspension of marketing campaigns by several major brands.
Join our WhatsApp ChannelIn light of Musk’s online behavior, industry giants like Walt Disney and Warner Bros Discovery have pressed pause on their ad placements, citing concerns over the platform’s content moderation.
READ ALSO: Nigerian Govt Seeks Partnership With Elon Musk’s Starlink To Boost Local Job Creation
X, in a bid to defend its reputation, has taken legal action against Media Matters, alleging defamation following claims that ads for tech titans like Apple and Oracle appeared alongside extremist content promoting Adolf Hitler and the Nazi party.
Internal documents reveal a list of over 200 ad units from prominent companies like Airbnb, Amazon, Coca-Cola, and Microsoft, with many either halting or considering the suspension of their ads on the embattled social network.
Despite disclosing that $11 million in revenue is currently at risk, X remains hopeful for al resurgence in advertiser confidence, acknowledging the fluctuating nature of their revenue estimates.
This setback is part of a larger narrative since Musk’s acquisition of the platform in 2022.
The perceived laxity in content moderation has led to an increase in hate speech, prompting an exodus of advertisers, plunging the platform’s value to less than half its original purchase price.
In the span of a year, X has seen tumultuous changes under Musk’s ownership, including layoffs, the introduction of subscription models, and a series of strategic shifts that have reshaped the platform’s landscape and financial standing.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
Follow Us