X might lose $75 million in ad revenue: Here's why
X might face a potential loss of $75 million in ad revenue by 2023 end, per The New York Times. Internal documents revealed that over 100 brands halted their ads on the site. This happened after Elon Musk's controversial tweet supporting an antisemitic conspiracy theory and media watchdog Media Matters's report on X ads next to antisemitic content. Big names like IBM, Apple, Disney, and Warner Bros. Discovery pulled their ads, with Lionsgate specifically citing Musk's tweet as the reason.
Musk agreed with antisemitic conspiracy theory
Musk endorsed an antisemitic conspiracy theory last week, following which prominent brands began withdrawing or temporarily suspending their advertisements on X. Subsequently, Media Matters released a report revealing ads appearing alongside antisemitic content on X. In retaliation, X filed a lawsuit, alleging Media Matters intentionally and maliciously created juxtaposed images depicting advertisers' posts on X Corp.'s social media platform alongside Neo-Nazi and white nationalist fringe content. Media Matters called the lawsuit "frivolous," saying it looks forward to winning in court.
Several major brands have pulled their ad campaigns
Reportedly, numerous prominent corporations and political candidates have completely halted their advertisements on X, and many others are contemplating withdrawing their campaigns. For reference, Airbnb has suspended over $1 million worth of advertising, while Netflix has withdrawn $3 million. Likewise, Microsoft's subsidiaries have also paused their campaigns, which could cost X $4 million in ad revenue. Other popular brands like Uber and Coca-Cola have also suspended their advertising. Notably, the video game company Ubisoft also withdrew its ads from X.
X claims risk of revenue loss not that significant
In response to The New York Times report, X claimed that the figures were either outdated or "represented an internal exercise to evaluate total risk." The company instead said the revenue at risk was only around $11 million, with the exact amount fluctuating as some advertisers returned or increased their ad spending. However, since Musk's takeover in October 2022 and reduced content moderation, the platform's US ad revenue has declined at least 55% year-over-year every month, reported Reuters.
