Major brands like IBM, Warner Bros, and Disney have pulled their ads from X altogether.
👉 Background: X is the company Elon Musk acquired for $44 billion USD, that he called the 'de facto public town square'. Elon committed to reduce moderation on the platform and cut a large chunk of X's moderation team.
👉 What happened: Now, a report released shows that ads from companies like IBM, Warner Bros, and Disney have been promoted next to anti-semitic and pro-Nazi posts. As a result, these major brands have pulled their ads from X altogether.
👉 What else: Others like Apple, Oracle and Discovery have also suspended advertising on X as well for fear of poor brand association.
💡When businesses decide to advertise on a platform, they are associating their brand with the platform's image, content and user base.
💡For brands, they have very little control over where their brands are positioned on the X newsfeed. And that means the risk of advertising on X is too great right now.
💡X's ad revenue is expected to drop 54% this year, compared to last year. And by 2024, X is expected to see another 4% reduction in ad spend. So X may face pressure to improve its moderation soon.
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