Elon Musk's aggressive stance towards advertisers and the platform's struggles to address hate speech have contributed to a significant decline in X's advertising revenue. The report reveals that only 4 percent of marketers believe X is safe for brands.
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| A new report highlights the growing challenges faced by X's advertising business. Marketers' trust in the platform is at a historic low, and many are considering reducing their spending due to concerns about harmful content. Symbolic image |
New York, USA - September 05, 2024:
Elon Musk's takeover of X, formerly known as Twitter, has had a significant impact on the platform's advertising business. According to a new report by Kantar, a market research firm, advertisers' trust in X is "historically low," and 26 percent of marketers plan to reduce their spending on the platform in the coming year.
The report, based on interviews with 18,000 consumers and 1,000 marketers worldwide, highlights the decline in X's advertising revenue since Musk assumed control. Numerous high-profile brands have paused or reduced their spending on the platform due to concerns about hate speech, misinformation, and other toxic content.
Musk's confrontational approach towards advertisers has further exacerbated the situation. He has publicly criticized brands expressing concerns about hate speech, using derogatory language and accusing them of "blackmail." Additionally, Musk recently sued an industry group and several global companies for allegedly conducting an "illegal boycott" of the platform.
Kantar's findings are particularly concerning as they indicate a significant erosion of trust among advertisers. Only 4 percent of marketers surveyed believe X is a safe platform for brands. This perception is likely influenced by the platform's struggles to address harmful content and the negative publicity surrounding Musk's leadership.
While X has claimed that it has improved its brand safety, performance, and analytics capabilities, the report suggests that these efforts have not been sufficient to regain advertisers' confidence. The company's aggressive stance against critics and its ongoing legal battles may also hinder its ability to attract and retain advertisers.
As X continues to face challenges in its advertising business, it is crucial for the platform to prioritize addressing the concerns of its advertisers. This includes implementing effective measures to combat harmful content, fostering a more positive and inclusive environment, and rebuilding trust with the marketing community. The future of X's advertising revenue may depend on its ability to successfully navigate these challenges and regain the confidence of its advertisers.