- By Vikas Yadav
- Sat, 25 Nov 2023 03:18 PM (IST)
- Source:REUTERS
Microblogging platform X, formerly called Twitter, is currently facing the heat of advertisers due to the endorsement of a recent antisemitic post by Tesla CEO and X owner Elon Musk and the broadcast of controversial ads. A recent report has pointed coordinates to the possible loss of revenue the firm may incur if this continues.
According to a New York Times report (cited by Reuters), X could lose up to $75 million in revenue by the end of 2023 as top brands pause their ad campaigns on the platform. The move was a result of a promotion of an antisemitic post by Musk and the ads appearing next to the posts that hail Adolf Hitler and Nazism.
Walt Disney and Warner Bros Discovery paused ads due to Musk's activity. X recently sued Media Matters concerning a report that led brands like Apple and Oracle to revoke spending after their ads appeared next to posts promoting Nazism. As per the documents reviewed by NYT, a new report listed over 200 ad units of companies which have paused ads or may do so in the future on the microblogging app.
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Elon Musk (Image:Reuters)
According to Reuters, X said that about $11 million was at risk and some ads returned to the site while others boosted spending. The problem of shrinking ad revenue has plagued the platform from October 2022 since the leadership overhaul. Civil rights groups highlight the reduced focus towards content moderation and the rise of hate speech among the key reasons.
The US ad revenue has declined about 55 per cent year-on-year per month after Musk's deal, the report noted. For more details about the antisemitic post and the revocation of ads on X by the Cupertino-based tech giant and other advertisers, you can head to this report.