Elon Musks’s X, the social network formerly recognized as Twitter, typically makes the most money by the end of the year through ad revenue as brands race to advertise amid the holiday season. But this year may not be as favorable for X, according to a report from The New York Times.
According to internal documents obtained by The Times, over 100 brands, along with other types of advertisers like political candidates, have completely suspended their ads on the platform. Additionally, dozens more are contemplating withdrawing their campaigns. If advertisers do not resume their activities, X could face a potential loss of up to $75 million in ad revenue earnings this year.
The documents outline the potential impact on X in the event of brands departing from the platform. This includes the initial brands that suspended their ads shortly after Elon Musk’s controversial tweet, where he endorsed an antisemitic conspiracy theory.
Following Musk’s tweet, media watchdog Media Matters released a report revealing ads on the platform appearing alongside antisemitic content. In response, X filed a lawsuit against the organization, alleging that it “knowingly and maliciously [manufacturing] side-by-side images depicting advertisers’ posts on X Corp.’s social media platform beside Neo-Nazi and white national fringe content.”
Following the incidents, brands such as IBM, Apple, and Disney swiftly withdrew their ads from X. Lionsgate explicitly cited Elon Musk’s tweet as the reason for suspending its advertising campaigns, and Ubisoft was among the first video game companies to do the same.
According to The Times’ report, Airbnb has suspended over $1 million worth of advertising on X, while Netflix has withdrawn $3 million in ads. Additionally, X faces the potential loss of $4 million in ad revenue as Microsoft’s subsidiaries halt their campaigns. Well-known brands like Uber and Coca-Cola have also opted to temporarily suspend their advertising on X.
X responded to the NY Times saying that the figures mentioned were either outdated or “reflected an internal assessment aimed at evaluating overall risk.” It emphasized that the actual revenue at risk is only $11 million and the figure keeps fluctuating as advertisers return or increase ad spending.