Elon Musk-owned social media company X is facing a potential loss of $75 million in advertising revenue by the end of the year as major brands pause their marketing campaigns, according to a report by the New York Times.
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The Impact of Musk’s Antisemitic Post
Following Musk’s support of an antisemitic post on the platform, companies such as Walt Disney and Warner Bros. Discovery have suspended their advertisements on the platform, formerly known as Twitter.
Legal Battle and Defamation Allegations
X has responded by filing a lawsuit against media watchdog group Media Matters, alleging that the organization defamed the platform by claiming that ads for major brands like Apple and Oracle appeared alongside posts promoting Adolf Hitler and the Nazi party.
Impact on Advertising Revenue
Internal documents reviewed by The New York Times show that over 200 ad units of companies including Airbnb, Amazon, Coca-Cola, and Microsoft have either paused or are considering pausing their ads on the social network. X stated that $11 million in revenue was at risk, with fluctuations as some advertisers returned and others increased spending.
Advertiser Exodus and Hate Speech
Advertisers have been leaving X since Musk’s acquisition in October 2022, citing reduced content moderation and a significant increase in hate speech on the site, as reported by civil rights groups. The platform’s US ad revenue has experienced a decline of at least 55% year-over-year each month since Musk’s takeover, according to previous reports by Reuters.