Around 200 companies at a distance
Musks
November 25, 2023, 7:50 a.m
Last week, Musk agreed to an anti-Semitic post on X and received a lot of criticism. As a result, dozens of advertisers are setting up marketing campaigns on Twitter’s successor. This could result in a loss of millions in advertising revenue.
According to a media report, the online platform X could lose up to $75 million in advertising revenue by the end of the year. The New York Times reported that dozens of large companies have temporarily suspended their marketing campaigns on X. In its report, the newspaper relies on internal documents from the online platform that it has viewed. Accordingly, more than 200 advertising units from companies such as Airbnb, Amazon, Coca-Cola and Microsoft have stopped advertising on X for the time being or are considering stopping their advertising.
Musk approved an anti-Semitic post on the platform last week. That prompted several major companies, including Walt Disney and Warner Bros. Discovery, to pause their advertising on the site formerly called Twitter. The New York Times also reported that X announced on Friday that $11 million in advertising revenue was at risk.
The exact number varies as some advertisers have returned to X and others have increased their spending. The company did not immediately respond to a Reuters request for comment. The online platform’s advertising revenue has fallen sharply every month since Elon Musk took over. The short message service is also becoming increasingly unpopular among users.
A few weeks ago, according to media reports, the online platform admitted a sharp loss in value since the tech billionaire bought it a year ago under the name Twitter. When shares were allocated to employees, X was valued at a total of $19 billion, wrote Fortune magazine and the US financial service Bloomberg, among others. Musk paid around $44 billion for Twitter in October 2022.