The New York Times reports that advertisers are increasingly reluctant to resume their spending on social media platform X, previously known as Twitter, following owner Elon Musk’s recent outburst in which he told advertisers “blackmailing” him to “go fuck yourself.”
A report from the New York Times claims that advertisers are showing a strong resistance to resuming their financial engagements with social media platform X/Twitter, following a series of controversial comments by its owner, Elon Musk. This is not good news for Musk, considering that X, which was rebranded from Twitter following Musk’s acquisition last year, has seen a serious decline in advertising in recent months.
During the Times‘s DealBook Summit, Musk made remarks that were seen as disrespectful and aggressive towards advertisers. As Breitbart News reported:
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.
Elon Musk’s Halloween costume (Taylor Hill /Getty)
This has created a rift between the platform and its primary revenue source, with several key advertisers and at least half a dozen major marketing agencies openly stating their clients’ reluctance to return to the platform. The concerns are not just financial but also relate to the reputational risks associated with being featured on a platform governed by Musk. Lou Paskalis, the founder and chief executive of the marketing consultancy firm AJL Advisory, commented: “There is no advertising value that would offset the reputational risk of going back on the platform.”
Twitter CEO Linda Yaccarino (Santiago Felipe/Getty)
Financial analysts estimate that X/Twitter could face a loss of up to $75 million in advertising revenue this quarter alone, a significant blow to its finances. Musk’s outburst had unfortunate timing, coming after the billionaire made several attempts at damage control such as visiting Israel.
In an effort to mitigate the fallout, X/Twitter CEO Linda Yaccarino has been actively trying to mend fences. She has highlighted Musk’s apology for agreeing with an allegedly antisemitic tweet and emphasized the potential benefits of advertising on the platform. However, the response from the advertising community has been lukewarm. The broader industry sentiment is increasingly skeptical of Musk’s leadership style and his capability to maintain a stable and conducive environment for advertisers.
The holiday season, traditionally a lucrative period for digital advertising, is now shadowed by uncertainty for the platform. Advertisers, who typically allocate substantial budgets for this period, might look elsewhere, reducing the platform’s market share in the digital advertising space.
Read more at the New York Times here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.