X will lose up to $75 million after the chaos caused by Elon Musk's posts

Advertising in the United States for

Social media company sformerly known as Twitterfaces a potential loss of up to 75 million US dollars In advertising revenues at the end of 2023. And this financial setback, I moved it New York timesIt is the result of the cessation of advertising campaigns for many related brands after their owner, Elon MuskHe endorsed the anti-Semitic conspiracy theory earlier this month.

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Internal documents reviewed this week reveal that… s It’s more complex than previously thought, with rejection extending far beyond similar companies IBM, Manzana And Disney, which has already suspended its advertising on the platform. More than 200 ad units from companies like Airbnb, Amazon, coca cola And Microsoft They have stopped or are considering stopping their advertising on the social network.

The suspension of advertisements comes at a critical time, given that the last quarter of the year is the strongest historically s Due to holiday promotions such as Black Friday And Cyber Monday. During the last three months of 2021, the company reported revenue of $1.57 million, nearly 90% of which came from advertising.

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Since Twitter’s acquisition of… Elon Musk, worth US$44 billion during 2022, some brands have shown a reluctance to advertise on the platform, concerned about the behavior of moguls and content moderation decisions that have led to an increase in inflammatory and hateful content. Advertising in the US is reported to be down nearly 60% this year CBS..

According to the documents he reviewed New York timesMore than 100 brands have “paused their advertising completely”, while dozens are listed as “at risk”. Many pauses occurred after November 15, when Musk posted… s The conspiracy theory that Jews support minority immigration to replace white populations is “current reality.”

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Lisha AndersonThe vice president of digital marketing and social media at Outcast advertising agency told the aforementioned media outlets that its clients have stopped spending on… s Gradually after the acquisition by the CEO TeslaAnd find alternatives on platforms like LinkedIn And Tik Tok.

It is among the organizations where it has stopped advertising s There are political campaigns, fast food chains and tech giants. AirbnbFor example, it spent more than $1 million on advertising, while… Uber Cutting ads worth more than $800,000 and canceling campaigns in US and foreign markets.

Netflix It suspended campaigns with advertising value of nearly $3 million. Various subsidiaries Microsoft They’ve also halted their advertising, which could mean a loss of more than $4 million in Q4 revenue s.

Google And Microsoft They declined to comment, and Amazon He did not respond to requests for comment. On the “Meet the Press” program. nbcRepublican presidential candidate Chris Christie He described Elon Musk’s comment as an example of recent “outrageous hatred.”

More than 100 advertisers have frozen their advertising investments in X, according to documents reviewed by The New York Times. (Reuters/Dado Rovik)

s He acknowledged that there has been a temporary pause in ad spending by some advertisers on the platform. This decision is in line with brands that, despite suspending their paid campaigns, have not stopped their activity on the social network, maintaining their commitment to their audience by publishing content at no cost.

“These brands understand the importance s “As a critical tool for connecting with their communities,” a spokesperson for the social network said. The advertising pause comes in a context in which the platform is facing criticism and a review of its commercial associations after controversial statements by its owner, Elon Musk.

On the other side, Linda YaccarinoMusk, who assumed the position of CEO of the company after Musk acquired the platform, faces the challenge of attracting major advertisers again after their significant decline. However, his administration is affected by public interventions and the billionaire’s handling of the platform, which may require ongoing crisis and reputation management efforts.

The X situation highlights the delicate balance between an entrepreneur’s personal situations and the business implications, especially at a time when a company may face a very significant financial loss.