Elon Musk’s platform weeks. The information was published by the New York Times which reveals that X is in a more delicate position than imagined.
200 brands suspend their advertising
The X platform risks having a very dry end of the year. The New York Times claims to have had access to internal documents revealing that nearly 200 brands have suspended or will suspend their marketing campaigns on X. Among these are giants such as Airbnb, Amazon, Microsoft, Coco-Cola, IBM , Apple, Disney, etc.
According to the New York Timesthe withdrawal of these giants risks causing Middle East.
X reacted to the New York Times statement by assuring that the probable losses were more like $11 million. Yet in the last quarter of 2021 for example, before Musk bought the company, Twitter made $1.57 billion in advertising revenue. The New York Times figures therefore seem to be more realistic, even if X insists on the contrary.
Elon Musk, a brake on the growth of X’s advertising revenue?
Since Musk acquired Twitter, brands have become increasingly reluctant towards the company. This year, the platform suffered a 60% contraction in American advertising. Musk’s comments and his philosophy on content moderation have undoubtedly contributed to this state of affairs.
Leesha Anderson, vice president of marketing at advertising agency Outcast, reacted to the New York Times article. She advises Musk to “discretion […] about his personal beliefs or political positions that […] will inevitably be subject to public scrutiny.
She also revealed that several of her clients have turned to LinkedIn and TikTok platforms since Musk’s takeover of Twitter. Let’s wait for what the next few weeks have in store for the social network.
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