Major advertisers, including IBM, Apple, and Disney, have suspended advertising on social network X due to the discovery of neo-Nazi content next to their brands. This has raised concerns about the platform’s content moderation practices and prompted over 200 companies to reconsider their advertising on X.
Potential Revenue Loss of $75 Million
X’s internal documents reveal a potential loss of up to $75 million in advertising revenue by the end of the year. This figure could be either out of date or refer to a hypothetical maximum, as some advertisers are returning to the platform while others are increasing their spending.
Fourth Quarter Losses Amplify Impact
The fourth quarter is typically the most profitable period for advertising sales, making the potential losses from advertisers leaving X even more significant. In 2021, when Twitter was still public, its fourth-quarter advertising revenue reached $1.57 billion, reminds NIXsolutions.
Notable Advertisers Reduce Spending
Several major companies have significantly reduced their advertising spending on X, including Airbnb, Uber, Netflix, and Microsoft. The NFL, on the other hand, has continued to advertise on the platform, drawing a personal thank you from Elon Musk.
Musk Pledges Humanitarian Aid from Advertising Revenue
Musk has pledged to direct all advertising revenue generated from coverage of the Middle East conflict to provide humanitarian assistance to victims in Israel and the Gaza Strip. This move highlights the complex balance between social responsibility and business interests in the digital advertising landscape.