The exodus of advertisers from X (Twitter) is more serious than Elon Musk thinks

Elon Musk’s message to Twitter advertisers has already had an effect. After insults made by the owner some brands have stopped paying for advertising on the social network, while others no longer post updates on their account.

According to a report from The newspaper “New York TimesAt least six marketing agencies representing various advertisers have warned their clients not to pay for advertising. Some consultants claim that Elon Musk’s comments raise uncertainty about the platform and are seen as an insult to brands.

“You cannot in good conscience recommend that a client continue to participate in what Musk did at X,” said Tom Hespos, executive director of media planning and director of Abydos Media. Following Wednesday’s debacle, Hespos advised one of its clients not to pay for additional advertising and to stop posting to its social media profile.

In turn, Lou Paskalis, executive director of AJL Advisory, noted that there is no promotional value that would justify the reputational risk of returning to X. While some companies have reduced their advertising investments since 2022, the trend accelerated when Elon Musk took control of Twitter. The self-proclaimed “free speech absolutist” has upended moderation policies, leading to an increase in posts containing hate speech and misinformation.

The situation worsened on November 15 when Elon Musk supported anti-Semitic conspiracy theory in X. The publication allowed IBM, Apple and dozens of companies to withdraw their advertising, which was regarded by the tycoon as blackmail.

Here’s how X’s advertisers reacted after the abuse

While attending the DealBook Summit, Elon Musk sent a strong message to advertisers who criticize X. The owner of the company told brands that are trying to blackmail him with advertising to go to hell. The attacks targeted Bob Iger, the CEO of Disney, who has previously voiced concerns about anti-Semitic content on the platform.

Unlike Apple, Disney or IBM, other brands prefer silent output. Report advertising week mentions that advertisers don’t want to face accusations from Elon Musk, who usually takes on the role terrorize. Paskalis points out that for every company that announces it is leaving Twitter, 10 more are leaving through the back door.

Companies like AT&T, Coca-Cola and General Motorswho invest more than $1 million in advertising, They cut their investment by 90%. Others wait until supplies run out before leaving the company. Mobby Nazir, strategy director at We Are Social, said the decline in advertising was due to corporate decisions.

The arrival of Linda Yaccarino did not have a positive effect. The CEO doesn’t want to develop a strategy to win back his clients. said that X “provides information independence that some find objectionable.” Yaccarino is trying to force brands to live up to his vision of freedom of expression, but agencies say that won’t happen.

If this trend continues, X risks being left without income and declaring bankruptcy. Elon Musk said that he knows about this and that advertisers will be to blame.