Social network X has seen advertisers leave en masse over concerns about the rise of toxic content on the platform and the policies of its owner, Elon Musk. Only 4% of marketers consider X a safe platform for brands. Musk denies the problems associated with a catastrophic drop in trust from advertisers. And the situation is unlikely to improve anytime soon.
X’s advertising business is going through hard times, and the worst is likely yet to come. According to a new study by market research firm Kantar, published by Advanced Television, 26% of marketers plan to reduce their ad spend on X in the next year. According to Engadget, advertiser trust in the platform has reached an all-time low.
The Kantar study, based on a survey of 18,000 consumers and 1,000 marketers worldwide, highlights how much X’s advertising business has suffered since Musk acquired it. Over the past year and a half, many major advertisers have paused or reduced their spending on the platform over concerns about the rise of hate speech and other toxic content.
Musk’s Response and Advertiser Concerns
The situation has been exacerbated by Musk himself, who has openly antagonized advertisers, telling brands concerned about hate speech to “go to hell” and accusing advertisers of blackmail. However, the study notes that only 4% of marketers consider X a safe place to advertise. Such low levels of trust could have global implications for the future of the platform, which relies heavily on advertising revenue, experts say.
X did not respond to a request for comment. The company previously told the Financial Times that “advertisers know X now offers greater ad placement safety for brands, as well as better performance and analytics than ever before, while seeing unprecedented levels of platform usage.”
NIX Solutions reminds that X recently sued an industry group and several global companies, accusing them of organizing an “unlawful boycott” of the platform.
The ongoing situation with X’s advertising business remains fluid, and we’ll keep you updated on any significant developments. As the platform continues to grapple with these challenges, it remains to be seen how it will address the concerns of advertisers and rebuild trust in its advertising ecosystem.
The impact of these issues extends beyond just X, as it highlights the delicate balance between content moderation, free speech, and advertiser expectations on social media platforms. As the digital advertising landscape evolves, platforms like X will need to find ways to maintain a safe environment for brands while also preserving user engagement and platform growth.
While X has implemented some measures to improve brand safety and ad performance, the low levels of trust among marketers suggest that more work needs to be done to convince advertisers of the platform’s value. The coming months will be crucial for X as it attempts to stabilize its advertising business and regain the confidence of brands and marketers.