Over 25% of advertisers planning to reduce spending on X
X is already facing a significant decline in its advertising business. Now, a report by Kantar reveals that approximately one-fourth of marketers intend to reduce their expenditure on the Elon Musk-owned social media platform next year. The study, which involved interviews with 18,000 consumers and 1,000 marketers globally, indicates a historic low in advertisers' confidence in the platform.
Ad business declines amid hate speech concerns
Since Musk assumed control of X, the platform has witnessed a significant decrease in its advertising business. Over the past 18 months, several high-profile advertisers have either stopped or reduced their spending due to worries about hate speech and other harmful content. This trend highlights the growing concerns among marketers about the platform's ability to provide a safe environment for brands.
Musk's controversial remarks and legal actions
Musk has been involved in several controversies, including making derogatory remarks toward advertisers concerned about hate speech on X. He has also accused these advertisers of "blackmail." Recently, he initiated legal action against journalism organization Media Matters, an industry group, and multiple global companies for allegedly conducting an "illegal boycott" of his platform. These incidents have further strained the relationship between X and its advertisers.
Only 4% of marketers consider X safe for brands
The Kantar report also revealed that a mere 4% of marketers consider X to be a safe platform for brands. This statistic further highlights the growing distrust among advertisers toward the social media platform. Despite these challenges, X has told the Financial Times that "advertisers know that X now offers stronger brand safety, performance and analytics capabilities than ever before, while seeing all-time-high levels of usage."
