Social network X usually makes the most money in the last months of the year, when all the big brands multiply their advertising campaigns in view of the Christmas shopping season. However, according to The New York Times, Elon Musk’s Company X’s earnings report for the quarter may look different than usual. According to internal documents more than 100 brands (and even other advertisers such as political candidates) has completely suspended its ads on these websites, while dozens more are considering taking them down. If the advertisers don’t come back, X may this year lose up to $75 million from advertising revenue.
The first major brands suspended their ads shortly after Elon Musk’s controversial tweet in which he agreed with an anti-Semitic conspiracy theory. Shortly after its publication, the organization published Media Matterswhich deals with media monitoring, a report which it shows ads on the site right next to anti-Semitic content. In response, Company X filed a lawsuit against the organization, accusing it of intentionally creating an environment where ads from some of the platform’s biggest advertisers appear alongside extreme and fringe content.
Linda Yaccarino, the company’s CEO, in her post X she defended and said that only two users saw Apple’s ad alongside the tacky content on the platform. According to her, one of them was Media Matters. However, in a statement, the organization called Company X’s lawsuit frivolous and said it was looking forward to winning in court.
Among the brands that quickly pulled their ads from X after these incidents were, for example, IBM, Apple, Netflix, Disney, Uber a Coca Colawhile Ubisoft was one of the first video game companies. According to a report by The Times, Airbnb suspended over $1 million worth of X advertising and Netflix pulled $3 million worth of ads. X could also lose $4 million in advertising revenue due to the suspension of Microsoft affiliate campaigns.
Company X denied the whole thing with the fact that the data provided is either out of date or was only used for an internal exercise to evaluate the overall risk. It also said that the potential loss of ad revenue is only around $11 million, and that the exact amount is constantly fluctuating as some advertisers scale back or even increase their ad spending.