Advertisers Lose Faith in Musk’s X, Revenue Plummets

A recent report shows that advertisers are pulling away from X (formerly Twitter), choosing to spend their budgets on other platforms. The platform’s ad revenue is expected to take a significant hit as research reveals that over a quarter of advertisers plan to reduce their spending.

Kantar, a data firm, interviewed 1,000 senior marketers worldwide, and the results are clear: 26% are cutting down on ad spending on X, and 14% have decided to stop promoting on the platform altogether. Since Elon Musk took over the platform in late 2022, global revenue has halved from $4.14 billion. Now, projections suggest it could drop to $1.9 billion by the end of this year.

Trust in X Fades Amid Musk’s Outbursts

Kantar’s research, which also surveyed 18,000 consumers, shows a growing concern among advertisers about the unpredictability and spread of misinformation on the platform. Gonca Bubani, a director at Kantar, explained that marketers need to trust the platforms they advertise on, but X’s unpredictable environment makes it hard to ensure brand safety.

Only 4% of marketers believe X offers a safe space for their brand. In comparison, platforms like Google, which leads in brand safety with 39%, and YouTube, have become more attractive options for advertisers.

Musk’s Erratic Behavior Drives Advertisers Away

Elon Musk’s unpredictable behavior has played a major role in this loss of confidence. He’s engaged in several public disputes, including controversies surrounding UK riots, a deepfake of U.S. Vice President Kamala Harris, and a clash with the Brazilian government. Musk’s public battles have only made things worse for X.

In one particularly damaging move, X has sued major companies like Unilever, Mars, and CVS Health, accusing them of supporting an "advertiser boycott." Musk responded with a fiery tweet: "We tried peace for 2 years, now it is war."

Musk’s confrontational attitude toward advertisers isn’t new. Last November, he lashed out at companies like Walt Disney, Apple, IBM, and Coca-Cola after they pulled their ads in response to him endorsing an anti-Semitic tweet. His response? An on-stage, expletive-filled rant, telling them, "Go f*** yourself."

X Called Out for Spreading Misinformation

To add to the platform’s troubles, the European Union identified X as a major source of misinformation. A study analyzing 6,000 social media posts across different platforms found X had the highest ratio of discoverable disinformation.

With Musk showing no signs of changing his approach, advertisers continue to shift their dollars to safer platforms. Kantar’s report notes that this trend has been growing for years and is now picking up speed. With Musk still at the helm, a recovery for X seems unlikely.