Elon Musk’s recent actions have triggered a mass exodus of advertisers from social media giant X, with industry experts predicting imminent turmoil. Major players like Walt Disney and Warner Bros. Discovery have already ceased advertising on the platform due to Musk’s endorsement of an antisemitic post. Musk’s subsequent apology was overshadowed by a profanity-laden tirade against departing advertisers, accusing them of “blackmail.” X’s CEO, Linda Yaccarino, praised Musk’s interview, emphasizing the platform’s commitment to openness without censorship.
Despite the potential bankruptcy risk from the advertiser boycott, Musk suggests blame would fall on brands rather than himself. Analysts, including Jasmine Enberg, attribute X’s troubles to Musk’s actions and confrontational remarks. The platform faces losing not only corporate advertisers but also potential political candidate revenue after lifting its political ad ban. Plans to discuss advertising strategies with clients amid escalating tensions are underway.
Ad spending on X plummeted by 64% in the U.S. from January to October, with monthly active users decreasing by 19% since Musk’s acquisition. Experts foresee a halt in ad spending, necessitating a greater reliance on subscription-based revenue. Notable corporations like Apple, IBM, Sony, Disney, Comcast, and Paramount constituted 7% of total U.S. ad spend on X until October. Attendees at a New York Times-hosted dinner were shocked by Musk’s explicit language against advertisers, suggesting X may no longer be a welcoming environment
