{"id":36894,"date":"2023-11-18T00:20:02","date_gmt":"2023-11-18T00:20:02","guid":{"rendered":"https:\/\/danielsmarketingblc.com\/CuratedProducts\/?p=36894"},"modified":"2023-11-18T00:20:03","modified_gmt":"2023-11-18T00:20:03","slug":"major-advertisers-pull-out-of-x-which-could-spark-a-larger-shift-away-from-the-app","status":"publish","type":"post","link":"https:\/\/danielsmarketingblc.com\/CuratedProducts\/2023\/11\/18\/major-advertisers-pull-out-of-x-which-could-spark-a-larger-shift-away-from-the-app\/","title":{"rendered":"Major Advertisers Pull Out of X, Which Could Spark a Larger Shift Away From the App"},"content":{"rendered":"<p><\/p>\n<div>\n<p><span><span><span><span><span><span>While Elon Musk and X CEO Linda Yaccarino have repeatedly lauded the indisputable fact that their X project is \u201c<a href=\"https:\/\/variety.com\/2023\/digital\/columns\/linda-yaccarino-x-twitter-ceo-elon-musk-1235740454\/\" style=\"color:#0563c1\">not boring<\/a>\u201d, I\u2019m pretty sure that the events of this week would have them each relieved to see a period of relative boredom heading into the vacation break.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Though that, in fact, seems unlikely.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>This week, X has been hit with a brand new raft of challenges, mostly stemming from Musk\u2019s own statements and public stances on various issues.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>To recap, throughout the week:<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<ul>\n<li><span><span><span><span><span><span>A brand new <a href=\"https:\/\/www.thedailybeast.com\/new-report-finds-musks-x-is-an-antisemitic-islamophobic-hell-scape\" style=\"color:#0563c1\">third-party evaluation report<\/a> suggested that X just isn&#8217;t doing enough to combat misinformation across the Israel-Hamas war, which is actually <a href=\"https:\/\/www.socialmediatoday.com\/news\/x-defends-enforcement-actions-around-israel-hamas-war\/699764\/\" style=\"color:#0563c1\">supported by X\u2019s own enforcement numbers<\/a><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Based on this, and other reports, the European Commission <a href=\"https:\/\/www.politico.eu\/article\/no-more-ads-elon-musk-x-twitter-european-commission-tell-staff\/\" style=\"color:#0563c1\">announced<\/a> that it might <\/span><span><span>stop promoting on X, because of \u201cwidespread concerns regarding the spread of disinformation\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The next day, IBM also announced that it might <a href=\"https:\/\/www.ft.com\/content\/647b4c4d-f4d5-46cd-bc26-8c943b6995e7\" style=\"color:#0563c1\">halt all promoting on X<\/a> because of this of a brand new report from <a href=\"https:\/\/www.mediamatters.org\/twitter\/x-placing-ads-amazon-nba-mexico-nbcuniversal-and-others-next-content-white-nationalist\" style=\"color:#0563c1\">Media Matters<\/a> which showed that X is placing paid promotions alongside <\/span><span><span><span><span>pro-Nazi material<\/span><\/span><\/span><\/span> in-stream<\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>On that very same day, Musk amplified and supported an anti-Semitic talking point on X, which has been linked to numerous attacks on Jewish people over time (SMT is not going to be repeating the small print of this)<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Because of this of Musk\u2019s post, several big-name advertisers have now announced that they\u2019ll even be <a href=\"https:\/\/www.theverge.com\/2023\/11\/17\/23965928\/apple-x-ads-elon-musk-antisemitic-posts\" style=\"color:#0563c1\">pausing their X ad campaigns<\/a>, including <a href=\"https:\/\/www.nytimes.com\/2023\/11\/17\/technology\/elon-musk-twitter-x-advertisers.html#:~:text=Disney%2C%20Apple%20and%20Lionsgate%20halted,on%20his%20social%20media%20platform.\" style=\"color:#0563c1\">Apple, Lionsgate, Disney<\/a>, and more. The list of advertisers joining this latest boycott is growing by the hour<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>A federal judge also rejected an attempt by X to <a href=\"https:\/\/www.washingtonpost.com\/technology\/2023\/11\/16\/twitter-musk-ftc-consent-agreement-decision\/\" style=\"color:#0563c1\">overturn an FTC advantageous of $150 million<\/a> (stemming from actions under previous Twitter management)<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>On one other front, an industry watchdog has <a href=\"https:\/\/www.wired.com\/story\/ftc-x-ads-investigation\/\" style=\"color:#0563c1\">called on the FTC<\/a> to look at X\u2019s latest ad formats, a few of which are usually not clear enough of their disclosure. That could lead on to a brand new investigation into X\u2019s ad practices<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span><span><span><span><span><span>So, yeah, it hasn\u2019t been a terrific week for Elon and Co., and their newly free-speech-aligned X app, which is now significantly more reliant on crowd-sourced moderation, via Community Notes, to administer key tasks. Which, based on a growing variety of investigations, is clearly not able to handling such.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Though that, in fact, just isn&#8217;t even the most important concern, with Elon\u2019s own commentary taking the mantle for X\u2019s central business problem this week.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Elon has long been defiant on this front, repeatedly stating that he&#8217;ll <a href=\"https:\/\/www.cnbc.com\/2023\/05\/16\/elon-musk-defends-inflammatory-tweets-ill-say-what-i-want.html\" style=\"color:#0563c1\">say what he wants within the app<\/a>, even when it means losing money because of this. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>And it does seem that he&#8217;s about to learn the way expensive his commentary could be. As a reminder, X\u2019s ad revenue is already <a href=\"https:\/\/www.cbsnews.com\/news\/twitter-traffic-falls-under-elon-musk-threads-mastodon-bluesky-competition\/\" style=\"color:#0563c1\">down at the very least 50% on last 12 months<\/a>, so any lack of a significant brand partner will probably be significant, when it comes to the continuing viability of the app. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Because despite the fact that Musk has cut costs significantly, by <a href=\"https:\/\/edition.cnn.com\/2023\/04\/12\/tech\/elon-musk-bbc-interview-twitter-intl-hnk\/index.html#:~:text=Musk%20was%20quoted%20as%20saying,80%25%20of%20the%20company's%20staff.\" style=\"color:#0563c1\">culling 80% of staff<\/a>, shutting down data centers, selling off <a href=\"https:\/\/edition.cnn.com\/2023\/08\/10\/tech\/twitter-auction-items\/index.html\" style=\"color:#0563c1\">Twitter-branded artifacts<\/a>, and more. Even with all that in mind, X continues to be riding the road on profitability. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In a recent interview, Yaccarino said that X <a href=\"https:\/\/www.livemint.com\/technology\/tech-news\/elon-musk-owned-x-will-be-turning-a-profit-in-early-2024-says-ceo-linda-yaccarino-11695880388176.html\" style=\"color:#0563c1\">might be near turning a profit in early 2024<\/a>, though that claim was also based on <\/span><span><span><span><span>90% of the app\u2019s top 100 advertisers having returned to the platform in recent months.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Now, a lot of them are leaving once more. And with Apple making an enormous statement by announcing its decision to halt X ads, it\u2019s now expected that many more big names will follow suit.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>And all of the while, Meta\u2019s alternative real-time app Threads <a href=\"https:\/\/www.socialmediatoday.com\/news\/threads-reaches-100-million-members-record-time\/685692\/\" style=\"color:#0563c1\">continues to grow<\/a>, and grow to be an even bigger place for news discussion, especially amongst journalists, a gaggle that Musk continues to deride, actively dissuading them from staying lively on his platform.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Which is also one other element that continues to harm X\u2019s recovery efforts, with Musk also taking the chance to <a href=\"https:\/\/twitter.com\/stclairashley\/status\/1725368186894229943\" style=\"color:#0563c1\">attack IBM<\/a> for its decision to halt X ads, amongst his ongoing attacks on \u201clegacy media\u201d. Which is a narrative that Musk <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1725429581564281240\" style=\"color:#0563c1\">continues to drive<\/a>, that nobody really has an issue with anything that he\u2019s saying, but that traditional media, which is in competition with X for ad dollars, is colluding to stop him, and destroy his free speech push. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Which is just not true, is unfounded, and never a viable theory in any way. Many big-name brands, like Apple, have actually stuck with X, despite Musk\u2019s ongoing antics. But now, it\u2019s his statements and stances which have driven them away. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>It\u2019s not a media narrative, nor a conspiracy to quell the \u201creal truth\u201d.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The one person responsible for X\u2019s troubles is Musk himself.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Which goes to cost him money, which, as noted, Musk has said that he\u2019s advantageous with. But together with his advertiser pool shrinking, that would quickly grow to be an existential threat for the app, if Yaccarino and Co.\u2019s damage control efforts are usually not capable of stem the rising tide. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>And it does feel like a tide this time, it appears like many are viewing this because the last straw. Indeed, even some major Tesla investors have declared Musk\u2019s latest comments as <a href=\"https:\/\/www.businessinsider.com\/elon-musk-criticized-business-leaders-tesla-investors-endorsement-antisemitic-theory-2023-11\" style=\"color:#0563c1\">a step too far<\/a>, and are advising their clients to tug out of his projects. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Will or not it&#8217;s a significant turning point, for Musk and\/or X? Will it fuel the rise of Threads as a real X rival?<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In some ways, it already has, while Musk, in his own, stubborn way, seems to have <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1725645884409401435\" style=\"color:#0563c1\">begrudgingly acknowledged<\/a> that his comments could have caused offense.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>He hasn\u2019t apologized, nor taken a backwards step. But that next step is probably going the one way out of this mess at this stage.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Can Musk actually try this? Will his ego allow him to step forward, admit that he was unsuitable, and take steps to rectify the situation?<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>And if he does, will that be enough to bring ad dollars back?<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Heading into the most important ad spending period of the 12 months, Musk\u2019s statements are horrendous, from all perspectives. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Could they be the start of the top of X?<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>While Elon Musk and X CEO Linda Yaccarino have repeatedly lauded the indisputable fact that their X project is \u201cnot boring\u201d, I\u2019m pretty sure that the events of this week would have them each relieved to see a period of relative boredom heading into the vacation break. Though that, in fact, seems unlikely. This week, [&#8230;]\n","protected":false},"author":1,"featured_media":36895,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"fifu_image_url":"https:\/\/www.socialmediatoday.com\/imgproxy\/zoKxtte21HP9FmSkaKUuPiHZrvLwC9trJ7sEwfQXJX4\/g:ce\/rs:fill:770:435:0\/bG9jYWw6Ly8vZGl2ZWltYWdlL0YxeVBrNVZYb0FBM3JHWi5qcGVn.jpg","fifu_image_alt":"","two_page_speed":[],"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[97],"tags":[1265,771,4459,1767,4457,3263,4458],"class_list":["post-36894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-advertisers","tag-app","tag-bigger","tag-major","tag-pull","tag-shift","tag-spark"],"aioseo_notices":[],"yoast_head":"<!-- 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