Social network X (formerly Twitter) may lose up to $75 million in revenue due to advertisers’ refusal after Musk’s scandalous remarks
According to internal documents of social network X (formerly Twitter) obtained by The New York Times from the sales department of company X, there is a significant risk of revenue loss by the end of the year. This is due to the massive refusal of advertisers to cooperate with the platform, which can lead to a decrease in revenues of up to $75 million.
These losses are especially significant given that the last three months of the year are usually the most profitable for social media due to the increase in advertising budgets during Black Friday, Cyber Monday, Christmas and New Year holidays. However, after November 15, more than 100 brands completely suspended their advertising on the platform. The decision was prompted by a report by Media Matters for America, which indicated that ads for companies such as Apple, IBM, and Oracle were displayed alongside posts containing extremist and anti-Semitic statements.
Particular attention is paid to Elon Musk, who got into a scandal by supporting anti-Semitic statements about Jewish communities that allegedly contributed to “dialectical hatred of whites.” This was one of the reasons why many large companies, including Airbnb, Coca-Cola, Microsoft, IBM, Apple, Disney, and Amazon, decided to abandon advertising campaigns on the platform.
In particular, Airbnb has suspended advertising worth more than $1 million, and Uber has suspended advertising worth more than $800,000. Losses from the suspension of Netflix advertising are estimated at almost $3 million. Various divisions of Microsoft, Amazon, and one of Google’s subsidiaries have also abandoned advertising campaigns, which could lead to a potential loss of more than $4 million in X’s fourth-quarter revenue. It’s worth noting that some brands, such as NBC Universal, have suspended advertising spending and continue to publish free content on the platform to ensure that they reach a wide audience.
