Is ad industry broken? X CEO calls for 'complete reset'
Linda Yaccarino, the CEO of X, has publicly declared her company's commitment to persist with its antitrust lawsuit against several major brands and an advertising industry group. This decision comes despite one of the defendants ceasing operations. Yaccarino, a former NBCUniversal executive and influential figure in the advertising sector, has accused certain key players of misusing their authority.
X's antitrust lawsuit targets WFA and its members
X has initiated a federal antitrust lawsuit against the World Federation of Advertisers (WFA) and its members, which include CVS Health, Mars, Orsted, and Unilever. The company alleges that these organizations leveraged their sway over marketers and ad agencies to unjustly discriminate against X. This led to an advertising boycott that has significantly impacted the company's revenue since Elon Musk acquired it in 2022.
Yaccarino insists on industry accountability and reform
Yaccarino stated, "We're continuing the lawsuit because in order for us to find out exactly what happened, there needs to be accountability for past actions." "Once we find out everything that happened, why it happened, what influenced this activity, there needs to be ecosystem-wide reform and a complete reset for the entire industry." X, she added, "will absolutely lean in to lead and mobilize the industry," and "to take a new look about behaviors that are appropriate and transparent."
Yaccarino urges decision-making based on business data
Yaccarino has argued that X's struggles in selling ads are due to an organized boycott effort rather than any issues advertisers may have with X's products or policies. She urged people to base their decisions on business data and facts, not biases. This statement comes as the company is projected to earn approximately $2 billion in advertising revenue this year, down from the $4.5 billion it earned in 2021.
X CEO addresses technical glitch and future plans
Yaccarino also addressed a recent technical glitch that delayed an audio interview between Musk and former President Donald Trump. She did not directly comment on whether this should concern advertisers but encouraged marketers to capitalize on the interview's popularity. Looking ahead, Yaccarino revealed that an invitation for Vice President Kamala Harris to participate in a Spaces interview conversation is "wide open," with the company allowing Harris to choose her interviewer.
