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X faces a potential ad revenue loss by year-end

X Company

It’s no secret that advertisers are hesitant to invest in X, previously known as Twitter, especially in the current climate. Recent insights give us an estimate of the potential losses the company might face.

According to internal sales documents obtained by The New York Times, X could see a drop of up to $75 million in ad revenue by the close of 2023. The materials revealed a list of over 200 companies that have either already ceased ad spending or are contemplating doing so, including notable names like Airbnb and Amazon.

This ad departure stems from Elon Musk, the owner of X, publicly endorsing an antisemitic conspiracy theory in a tweet that remains active.

The persistence of such content, coupled with a surge in hateful material appearing alongside ads, has created a challenging environment for advertisers.

X has even acknowledged a report from watchdog group Media Matters, confirming that ads on the platform are indeed being displayed alongside objectionable content. However, X is taking legal action against Media Matters, alleging a deliberate and malicious effort to “drive advertisers from the platform.”

Major companies, including Apple and IBM, have already withdrawn their advertising, and even Paris Hilton’s company has scaled back a recently announced partnership with the platform.

While some right-wing influencers have pledged financial support for Musk, it’s doubtful that they possess the resources to cover the deficit. Given Musk’s status as one of the wealthiest individuals globally, he likely doesn’t require such assistance.

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