What's happened
A recent survey reveals that 26% of advertisers plan to reduce spending on Elon Musk's social media platform, X, due to concerns over content safety and trust. This marks a significant decline in advertiser confidence since Musk's acquisition in 2022.
What's behind the headline?
Declining Advertiser Confidence
- 26% of marketers plan to cut spending on X in 2025.
- Trust in X ads has dropped from 22% to 12% since 2022.
- Only 4% of marketers believe X provides brand safety, compared to 39% for Google.
Impact on Revenue
- X's global revenue is projected to fall to $1.9 billion by the end of 2024, down from $4.14 billion in 2022.
- UK revenues are expected to drop to $160 million.
Future Implications
- The ongoing advertiser exodus suggests a challenging road ahead for X.
- Musk's controversial management style may further alienate advertisers, impacting the platform's viability.
What the papers say
According to The Guardian, Kantar's research indicates that advertisers are increasingly concerned about the content on X, stating, "Marketers are brand custodians and need to trust the platforms they use." The Telegraph highlights Musk's confrontational approach towards advertisers, labeling their withdrawal as 'blackmail.' Business Insider UK notes that major brands like Disney and Apple have already pulled their advertising, reflecting a broader trend of distrust in the platform's safety. This divergence in perspectives underscores the growing tension between Musk's vision for X and the realities of advertiser expectations.
How we got here
Since Elon Musk's acquisition of Twitter in October 2022, the platform has faced a decline in advertising revenue. The reinstatement of controversial accounts and the allowance of 'toxic content' have raised concerns among advertisers.
Go deeper
- What are the reasons behind the advertisers' concerns?
- How has Musk's management affected X's reputation?
- What does the future hold for advertising on X?
Common question
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Why Are Advertisers Cutting Spending on X?
Recent trends show a significant decline in advertising spending on X, the social media platform formerly known as Twitter. This shift raises important questions about the future of social media advertising and the factors influencing these decisions. Below, we explore the reasons behind this trend and what it means for advertisers and users alike.
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Why Are Advertisers Cutting Spending on X?
A recent survey indicates a significant decline in advertiser confidence in X, the social media platform formerly known as Twitter. With 26% of advertisers planning to reduce their spending, it's crucial to understand the reasons behind this trend and its implications for the platform's future. Below, we explore the key concerns driving this shift and what it means for social media advertising as a whole.
More on these topics
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Kantar is a data, insights and consulting company that was founded in 1992. It has more than 30,000 employees working in 100 countries in various research disciplines, including social media monitoring, advertising effectiveness, consumer and shopper beha
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Elon Reeve Musk FRS is an engineer, industrial designer, technology entrepreneur and philanthropist. He is the founder, CEO, CTO and chief designer of SpaceX; early investor, CEO and product architect of Tesla, Inc.; founder of The Boring Company; co-foun
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Twitter was an American social networking service that was rebranded as X in 2023. Established in March 2006, it grew to become one of the world's largest social media websites and the fifth-most visited website in the world. It was launched in July 2006.