Elon Musk’s social media platform, X, is facing significant losses as major companies have decided to hold their advertisements on the platform. According to a report by Reuters, as cited by the New York Times, X could lose up to $75 million by the end of the year.
The concerns about Musk and the platform extend beyond big names like IBM, Apple, and Disney, who have already paused advertising on X. The New York Times reported that around 200 companies have completely halted their ads, with many others labeled as “at risk.”
Internal documents revealed that over 200 ad units were paused by firms like Airbnb, totaling over $1 million. Tech giants like Uber, Amazon, Coca-Cola, Netflix, and Microsoft have also suspended or are considering halting their advertising efforts on social media networks.
The report highlights X’s contest on ad revenue loss, with the platform claiming that the exact amount at stake is $11 million. However, Musk’s controversial posts on X are rumored to have led to the exodus of advertisers, along with criticisms about the platform’s content moderation.
The decline in advertising comes at a crucial time for X, as it enters the peak advertising quarter, which usually brings in substantial revenue. Human rights groups attribute the decline to Musk’s acquisition of the platform and the subsequent reduction in content monitoring, leading to an increase in hate speech.
Despite X’s efforts to contest the revenue loss, it is clear that Musk’s association with the platform has had repercussions, with advertisers seeking alternative platforms like LinkedIn and TikTok. As X faces continued challenges, it remains to be seen how Musk will navigate the platform’s future.
