Major companies like Disney, IBM, Warner Bros. Discovery, Comcast, and Lionsgate Entertainment have cautiously resumed advertising on X (formerly Twitter) after a year-long hiatus. These brands initially withdrew their advertising in late 2023 due to concerns about the platform’s content moderation, particularly following instances of antisemitic content and hate speech. The situation worsened when X owner Elon Musk reportedly endorsed an antisemitic conspiracy theory, leading a coalition of Jewish leaders and activists to call for a boycott.
Despite their return to X in 2024, the financial commitment from these companies has drastically reduced. According to MediaRadar, these companies collectively spent $3.3 million on advertising on X between January and September 2024, a 98% drop from the $170 million spent during the same period in 2023. The sharp decline highlights ongoing caution regarding the platform’s moderation practices.
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In contrast, smaller challenger brands such as Karma Shopping, Canles, and Kueez have increased their advertising spending on X, filling the gap left by the larger brands. These companies have spent over $68 million on X in 2024, capitalizing on reduced competition. Media experts, such as Meghan Fraze from MediaRadar, suggest that X may be shifting toward a “long-tail” advertising strategy, catering to smaller advertisers looking for less competitive and more cost-effective opportunities.
The return of major advertisers has been largely attributed to X’s CEO, Linda Yaccarino, who has worked to rebuild trust and improve content moderation. Elon Musk publicly praised Yaccarino and the X team for their efforts to restore confidence in the platform. However, despite resuming ads, brands like IBM have maintained a cautious stance, while others, including Disney and Warner Bros. Discovery, have yet to comment on their decision.
The political landscape, particularly Musk’s ties to President-elect Donald Trump, could also influence future advertising strategies on X. As the 2024 U.S. election draws near, brands may need to reassess their approaches to advertising on the platform, especially if content moderation practices continue to spark controversy.
In summary, while major brands have returned to X, their reduced spending underscores ongoing concerns about the platform’s content moderation. Meanwhile, smaller advertisers are stepping in, potentially signaling a new direction for X’s advertising strategy as it seeks to balance the needs of both large and small advertisers.
