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Home»Tech»Walmart Ceases Advertising on Elon Musk’s X/Twitter
Tech

Walmart Ceases Advertising on Elon Musk’s X/Twitter

December 2, 2023No Comments3 Mins Read
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Walmart, the largest retailer in the United States, has announced its decision to stop advertising on Elon Musk’s X/Twitter.

Bloomberg reports that Walmart is discontinuing its advertisements on Elon Musk’s X social media platform, formerly known as Twitter. This decision positions Walmart on the growing list of major companies that have recently chosen to withdraw advertising from the platform.

A shopper leaves a Walmart on Black Friday in Wilmington, Delaware (Photo by SAMUEL CORUM/AFP via Getty Images)

A Walmart spokeswoman informed Bloomberg News that the company is shifting its advertising strategy to other platforms which it believes will more effectively reach their customer base. “We aren’t advertising on X as we’ve found other platforms to better reach our customers,” a Walmart spokeswoman stated.

The platform’s head of business operations, Joe Benarroch, responded to Walmart’s departure by highlighting the retailer’s substantial following of over one million users on the platform. He emphasized that a majority of the site’s users are online shoppers, suggesting that Walmart’s decision might be a missed opportunity for the company.

Breitbart News recently reported 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.

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.”

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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.

Read more at Bloomberg here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.

Advertising ceases Elon Musks Walmart XTwitter
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