X risks losing $75m advertising revenue before end of year
By Kingsley Odii
Recently, it was reported by the New York Times that Elon Musk’s social media company, X, could face a loss of up to $75 million in advertising revenue by the end of the year.
This is because many major brands, including Walt Disney and Warner Bros Discovery, have paused their marketing campaigns on the platform after Musk purportedly supported an antisemitic post.
In response, X has filed a lawsuit against media watchdog group Media Matters, accusing them of defaming the platform. The lawsuit claims that Media Matters falsely stated that ads for well-known brands such as Apple and Oracle were placed next to posts promoting Adolf Hitler and the Nazi party.
According to internal documents seen by The New York Times, over 200 ad units from companies like Airbnb, Amazon, Coca-Cola, and Microsoft have either halted or are considering pausing their ads on X. The revenue at risk is estimated to be around $11 million, although this number may vary as some advertisers return to the platform or increase their spending.
According to a report, X revealed recently that the current revenue at stake amounts to $11 million. However, the exact figure is subject to change as some advertisers may return to the platform or modify their spending.
Since Musk’s acquisition of X in October 2022 and his reduction in content moderation, advertisers have been leaving the platform due to an increase in hate speech, as reported by civil rights groups. The platform’s ad revenue in the U.S. has consistently declined by at least 55% year-over-year each month since Musk took over.
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