A recent survey by research firm Kantar reveals that approximately one-quarter of advertisers plan to cut spending on X, the social media platform formerly known as Twitter, in 2024. This would mark the most significant reduction in ad spending on any major platform, according to Kantar, signaling a deepening crisis for X in retaining advertisers.
Since billionaire Elon Musk acquired the platform in 2022, X has struggled with an exodus of advertisers. High-profile companies such as Apple, Coca-Cola, and Disney halted paid advertisements in 2023, with some citing Musk’s public endorsement of an antisemitic post as the tipping point. These advertiser departures have continued into 2024, as the platform faces mounting criticism over its ability to protect brands from being associated with controversial or extremist content.
High-profile Pullouts Continue
Earlier this year, the World Bank terminated its paid advertising campaign on X after a CBS News investigation revealed that the organization’s ads were displayed beneath a racist post from a user known for spreading neo-Nazi and white nationalist content. This incident raised further concerns about X’s brand safety protocols.
Political campaigns have also been impacted. Jerrad Christian, the Democratic candidate for Ohio’s 12th district, pulled his campaign ads from X following revelations that his ads appeared under antisemitic content. Tim Cox, Christian’s campaign communications director, expressed dismay over X’s failure to safeguard their ads. “We knew our ads were being shown in replies and on profiles, but we had no idea they were being served under these types of accounts or posts,” Cox told CBS News. Despite enabling X’s brand safety tool to limit the types of content their ads would be displayed alongside, Cox noted that “clearly, this brand safety tool is not working.”
A Brand Safety Crisis
The Kantar survey, which interviewed 18,000 consumers across more than two dozen markets, along with 1,000 senior marketing executives globally, highlights that only 4% of marketers believe X provides adequate brand safety. In stark contrast, Google leads the pack with 39% of marketers ranking it highest for brand safety, further underlining X’s precarious position.
“Advertisers have been moving their marketing spend away from X for several years. The stark acceleration of this trend in the past 12 months means a turnaround currently seems unlikely,” said Gonca Bubani, global thought leadership director at Kantar.
Bubani further explained, “Marketers are brand custodians and need to trust the platforms they use. X has changed so much in recent years and can be unpredictable from one day to the next — it’s difficult to feel confident about your brand safety in that environment.”
Challenges for X’s Leadership
Under CEO Linda Yaccarino, X has attempted to lure advertisers back to the platform, but the findings suggest these efforts may not be yielding the desired results. Musk’s erratic behavior, policy changes, and ongoing concerns about the platform’s association with offensive content have tarnished its appeal.
Brand safety, which refers to measures that protect a company’s image by preventing its ads from appearing next to objectionable content, has become a top concern for marketers, particularly on X. As the platform continues to lose trust among advertisers, its competitors, including YouTube, Google, and TikTok, appear to be benefiting. According to Kantar, YouTube remains the top digital platform for advertising, while Amazon and TikTok lead in consumer satisfaction with their advertising offerings.
As X’s advertising woes deepen, the platform faces an uphill battle in convincing marketers to return, raising doubts about its long-term viability as a key player in the digital advertising landscape.
Credit: CBS News
