25-11-2023 (SAN FRANCISCO) Elon Musk’s social media company X is facing a potential advertising revenue loss of up to $75 million by the end of the year as numerous prominent brands suspend their marketing campaigns, according to a report by The New York Times on Friday.
The backlash began after Musk endorsed an antisemitic post on the platform last week, prompting companies such as Walt Disney and Warner Bros Discovery to pause their advertisements on the platform formerly known as Twitter.
In response, X has taken legal action against media watchdog group Media Matters, accusing the organization of defaming the platform with a report that claimed ads for major brands like Apple and Oracle appeared next to posts promoting Adolf Hitler and the Nazi party.
Internal documents reviewed by The New York Times reveal that more than 200 advertising units from companies such as Airbnb, Amazon, Coca-Cola, and Microsoft have either halted or are considering pausing their ads on the social network.
According to the report, X stated on Friday that $11 million in revenue was at risk, with the exact figure fluctuating as some advertisers returned to the platform while others increased their spending.
Reuters reached out to X for comment, but the company has not responded at the time of writing.
Civil rights groups have highlighted a surge in hate speech on X since Musk’s acquisition of the platform in October 2022, which has resulted in advertisers fleeing the platform.
As previously reported by Reuters, the platform’s U.S. ad revenue has declined by at least 55 percent year-over-year each month since Musk took over and implemented reduced content moderation measures.
