Elon Musk-owned social media company X is expected to face significant financial setbacks as several major brands have decided to pause their marketing campaigns on the platform. According to the New York Times, X could potentially lose up to $75 million in advertising revenue (approximately Rs. 625 crore) by the end of the year. This downturn in revenue can be directly attributed to Musk’s endorsement of an antisemitic post on the platform last week.
The repercussions of Musk’s controversial actions have been swift, with several prominent companies, including Walt Disney and Warner Bros. Discovery, choosing to pause their advertisements on X. The platform, formerly known as Twitter, now finds itself entangled in a crisis as it faces the loss of advertising revenue from these major brands.
In response to the negative publicity surrounding the antisemitic post, X has taken legal action against media watchdog group Media Matters. The company has filed a lawsuit, claiming that the organization defamed the platform with a report suggesting that ads for brands such as Apple and Oracle appeared alongside posts promoting Adolf Hitler and the Nazi party.
Internal documents obtained by The New York Times indicate that more than 200 ad units from companies like Airbnb, Amazon, Coca-Cola, and Microsoft have either paused or considered halting their ads on X. This action has a direct impact on the platform’s revenue, as major brands account for a substantial portion of its advertising income.
According to the report, X has already reported a potential risk of $11 million (around Rs. 92 crore) in revenue. However, the exact amount is subject to change as some advertisers may return to the platform while others may increase their spending. It is worth noting that X’s ad revenue in the United States has declined by at least 55 percent year-over-year each month since Elon Musk took over the platform.
The fallout from Musk’s endorsement of an antisemitic post continues to pose challenges for X. The loss of advertising revenue from major brands, coupled with legal battles with media watchdog groups, paints a bleak picture for the company’s financial prospects in the near future. X must urgently address the concerns raised by advertisers and take swift action to restore trust in its platform.
Elon Musk’s ownership of social media company X has come under intense scrutiny following his controversial endorsement of an antisemitic post. The subsequent loss of advertising revenue from major brands highlights the wide-reaching consequences of such actions. As X navigates this challenging period, it must prioritize rebuilding trust with advertisers and implementing measures to prevent similar controversies in the future. Failure to do so could have long-lasting implications for the platform’s financial stability and reputation in the industry.
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