Check out the impressive ‘X’ logo design on the head office of X, formerly known as Twitter, located in bustling San Francisco, California, U.S., July 30, 2023. REUTERS/Carlos Barria/File Photo Obtain Licensing Rights
Elon Musk-owned social networks business X might suffer a massive $75 million blow in advertising revenue by the end of the year. This comes as major brands have halted their marketing campaigns, according to a New York Times report on Friday.
The recent controversy surrounding an antisemitic post supported by Musk on the platform has led several companies, including Walt Disney (DIS.N) and Warner Bros Discovery (WBD.O), to pause their ads on the site formerly known as Twitter.
X has retaliated by taking legal action against Media Matters, a media watchdog group, accusing them of damaging the platform’s reputation with a report that claimed ads for major brands, including Apple and Oracle, appeared alongside posts promoting Adolf Hitler and the Nazi party.
Internal documents seen by The New York Times show that more than 200 ad units from companies like Airbnb, Amazon, Coca-Cola, and Microsoft have halted or are considering pausing their ads on the social network, the report stated.
According to the report, X disclosed that $11 million in revenue is at risk, with the exact figure fluctuating as some advertisers return to the platform and others increase spending.
The company has not yet responded to a Reuters request for comment.
Advertisers have been leaving X since Musk’s acquisition in October 2022 and the subsequent reduction in content moderation, resulting in a surge of hate speech on the site, according to civil rights groups.
The U.S. ad revenue on the platform has declined at least 55% year-over-year monthly since Musk’s takeover, as reported by Reuters.
Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Devika Syamnath
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