By Breitbart News Network | Created at 2024-11-15 19:54:01 | Updated at 2024-11-22 13:27:48
6 days ago
Some of X/Twitter’s former top advertisers, including Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment, have resumed ad spending on the platform in 2024, albeit at significantly reduced rates compared to previous years.
AdWeek reports that after pausing their campaigns on X (formerly Twitter) in November 2023 due to concerns over their ads appearing alongside antisemitic content and “hate speech,” several major advertisers have returned to the platform in 2024. According to data from marketing intelligence platform MediaRadar, these brands collectively spent less than $3.3 million on X from January to September 2024, representing a staggering 98 percent year-over-year drop from the $170 million spent during the same period in 2023.
The exodus of top advertisers from X was triggered by concerns about brand safety. However, some brands are now reconsidering their approach to X, given Musk’s close ties to President-elect Donald Trump. Max Willens, senior analyst at Emarketer, suggests that “sending at least a trickle of ad spending toward X may be seen as good for business, albeit in an indirect way.”
Last year, a fiery Musk told advertisers to “go fuck yourself” when questioned about what was essentially a leftist-led boycott of the platform:
At the summit, he addressed advertisers that have cut off their relationship with X/Twitter, stating: “Go fuck yourself… Go. Fuck. Yourself. Is that clear?” He also accused these advertisers of trying to “blackmail” the company and potentially driving it into bankruptcy.
The situation is further complicated by a lawsuit filed by X/Twitter against Media Matters, alleging a “blatant smear campaign” against Musk and X using manipulated research. The lawsuit, along with perceived damage control moves like visiting Israel have not moved the needle with major advertisers who have paused their spending on the platform.
Among the returning advertisers, Comcast spent less than $1.5 million on X this year, followed by Warner Bros. Discovery at $1.1 million, Disney at under $550,000, Lionsgate at less than $230,000, and IBM at under $2,000. Notably, Apple has continued its X ad hiatus since last year’s widely publicized pause.
Despite the return of some major advertisers, X’s ad revenue has suffered a significant decline. The platform generated $1.8 billion in ad revenue through Q3 2024, a 29 percent year-over-year decrease from $2.5 billion in the same period last year, as reported by MediaRadar.
X’s struggles to demonstrate the effectiveness of its ad formats have contributed to marketers’ reluctance to allocate substantial budgets to the platform compared to competitors like Meta or Google. However, X has stated that it is working on improving its ad products, which could encourage more buyers to spend.
The platform has also seen a shift in its advertiser base, with challenger brands like Karma Shopping, Canles Shoes, and Kueez Entertainment each spending more than $12 million this year, totaling $68 million, to gain visibility on a less crowded media channel. This suggests that X may be moving towards a long-tail advertiser strategy, appealing to new brands seeking to connect with audiences without intense competition.
Despite the cautious return of some advertisers, concerns about brand safety on X persist. A global survey by Kantar found that only four percent of marketers trust X for brand safety, compared to 39 percent for Google Ads. Furthermore, 26 percent of marketers plan to cut their spending on X in 2025.
Read more at AdWeek here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
