Some of X/Twitter's former top advertisers, including Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment, plan to increase their ad spend on the platform in 2024, albeit at a significant reduction compared to the previous year. It has restarted.
ad week report After suspending campaigns on X (formerly Twitter) in November 2023 due to concerns that ads would appear with anti-Semitic content or “hate speech,” several major advertisers announced plans to move forward in 2024. He reportedly returned to the platform. In total, these brands spent less than $3.3 million on X from January to September 2024, compared to the $170 million spent during the same period in 2023, according to data from marketing intelligence platform MediaRadar. Compared to the US dollar, this corresponds to a staggering 98% year-over-year decline.
The exodus of top advertisers from X was triggered by brand safety concerns. But given Musk's close relationship with President-elect Donald Trump, some brands are now rethinking their approach to X. Max Willens, a senior analyst at eMarketer, suggested that “directing at least some of the ad spend to company X, even if indirectly, may be seen as good for business.'' are.
Last year, when asked about what was essentially a left-wing boycott of the platform, a fiery Mr. Musk told advertisers to “fuck you.”
At the summit, he addressed advertisers who have cut ties with X/Twitter. Fuck. yourself. Is it obvious? He also accused these advertisers of trying to “blackmail” the company and potentially force it into bankruptcy.
The situation is further complicated by a lawsuit filed by X/Twitter against Media Matters for a “blatant smear campaign” against Musk and X using manipulated research. There is. The lawsuit, along with other damage control moves such as Visit Israel, did not sway major advertisers, who have paused spending on the platform.
Among returning advertisers, Comcast spent less than $1.5 million on X this year, followed by Warner Bros. Discovery with $1.1 million, Disney with less than $550,000, Lionsgate with less than $230,000, and IBM with $2,000. It was less than a dollar. Notably, Apple has continued to suspend X ads since a widely publicized suspension last year.
Despite the return of some major advertisers, X's advertising revenue suffered a significant decline. MediaRadar reports that the platform will generate $1.8 billion in ad revenue through the third quarter of 2024, down 29% from $2.5 billion in the same period last year.
Company X has struggled to prove the effectiveness of its ad formats, making marketers reluctant to allocate larger budgets to the platform compared to competitors such as Meta and Google. There is. However, X says it is working on improving its advertising products, which could increase buyer spending.
The platform's advertiser base has also seen a shift, with challenger brands like Karma Shopping, Canles Shoes, and Kueez Entertainment spending more than $12 million each and $68 million total this year to gain visibility on less crowded media channels. is spent. This suggests that X may be moving toward a long-tail advertiser strategy that avoids intense competition and appeals to new brands looking to connect with their audiences.
Despite the cautious return of some advertisers, concerns about brand safety on X persist. A global study by Kantar found that only 4% of marketers trust X when it comes to brand safety, compared to 39% when it comes to Google Ads. Additionally, 26% of marketers plan to reduce their spending on X in 2025.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues.
