Tech behemoths like Microsoft, Coca-Cola, and Airbnb have drawn a lot of attention in the industry since Elon Musk’s most recent antisemitic content conspiracy chronicle, as they appear to be considering their exit strategy from social media advertising.
Some internal documents provided illustrations for this data, as reported by the New York Times.
After X’s antisemitic content scandal, the company—which was formerly known as Twitter—went to court and filed lawsuits against Media Matters. This caused X to receive a lot of attention from industry enthusiasts.
Examining the Report in More Detail
By the end of 2023, the social media platform X might lose up to $75 million in revenue from advertising, according to reports. Dozens of big brands seem to have stopped running their social media marketing campaigns, which is what caused the loss.
Some of the biggest names in the business have stopped running advertisements, which is consistent with Elon Musk’s recent exposé regarding antisemitic content on his social media platform.
Following the display of antisemitic content on the social media platform X, some of the major tech giants, including Apple and IBM, also suspended advertising-related activities. This was previously reported by CoinGape media.
Furthermore, The New York Times’ review of recent internal documents reveals that the company is facing more difficulties than previously reported. Concerns regarding Musk and the platform go far beyond the actions of businesses like Disney, Apple, IBM, and X, which stopped running advertisements on X last week. The documents list more than 200 ad units from businesses like Microsoft, Coca-Cola, Airbnb, and Amazon, many of which have either halted or are considering stopping their social media marketing.
X did, however, note in a statement on Friday that $11 million in revenue could be at risk, with the precise amount changing depending on which advertisers increased their spending and which ones resumed using the platform.
X’s Up-to-Date Advertising Chronicle
The business explained that the numbers The Times had examined were either out of date or a result of an internal evaluation to determine overall risk.
The last quarter of the year, which is usually the busiest on social media, is when the advertising suspensions occur because that’s when companies start promoting for Black Friday and Cyber Monday.
Under the previous management before Musk took over, the company reported $1.57 billion in advertising revenue in the last quarter of 2021, of which nearly 90% came from advertising.
Due to worries about Musk’s actions and content moderation choices, some brands have been hesitant to run ads on the platform since he paid $44 billion to acquire X last year. This has led to an increase in hateful and incendiary content.
This year, U.S. advertising on the platform has decreased by almost 60%, which has prompted the CEO of the company, Linda Yaccarino, to spearhead efforts to re-engage advertisers.
Though sprinting challenges in running holiday ad campaigns to make up for revenue shortfalls, as the disclosed documents show. Many brands are classified as “at risk,” and more than 100 brands have their advertisements marked as having “fully paused.”
Around or after Nov. 15, when Mr. Musk made a statement on X supporting a conspiracy theory about Jews supporting immigration to replace white populations, there were a significant number of pauses, which he described as “the actual truth.”