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Elon Musk's anti-Semitic remarks spark controversy! Advertisers massively withdraw from Twitter, estimated losses exceeding 70 million euros

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Elon Musk

The New York Times reported that X, formerly Twitter, has faced criticism due to Elon Musk's anti-Semitic conspiracy theories. In the midst of the controversy, several major companies, including Airbnb and Apple, have announced the suspension of their advertising partnerships with the company, resulting in an estimated revenue loss of around $75 million.

Over 200 Major Advertisers Halt Partnership with X

The New York Times reports that in recent weeks, over 100 brands have paused their ads on X, while dozens of other companies are at risk of suspending their partnerships.

It is understood that currently, over 200 companies have stopped or reduced their advertising collaborations with X, leading to a potential loss of $75 million in revenue for the company this year, including:

  • Airbnb: $1 million reduction
  • Uber: $800,000 reduction
  • Netflix: $3 million reduction
  • IBM: $1 million reduction
  • Apple: Over $10 million reduction

Other entertainment and tech companies like Warner Bros., Disney, Coca-Cola, Microsoft, Google, and Ubisoft, who did not disclose specific amounts, are also among those affected.

Prior to this, even though the company claimed that over 1,700 advertisers had returned to X in the past six months, the situation of loss may be more severe.

Dim Revenue as the Year Ends

Reports reveal that during major holidays, especially in the fourth quarter, it is usually a period of substantial revenue for X. In the last three months of 2021, the company generated up to $1.57 billion in revenue, with nearly 90% coming from ads.

However, due to the mass exodus of advertisers, the company is speculated to face a revenue decline this year:

Despite X's ongoing efforts to convince advertisers to return to the platform and make up for the revenue shortfall during the year-end period, it seems that the expected results have not been achieved. X's fourth-quarter revenue could suffer a loss of over $4 million.

Musk Sparks Controversy with Sensitive Issue

Leesha Anderson, Digital Marketing and Community Manager at advertising agency Outcast, revealed that since Musk took over X, advertisers have gradually reduced their spending on the social media platform and found alternative solutions on platforms like LinkedIn and TikTok.

However, the trigger that truly caused a significant loss in ad revenue seems to stem from a tweet Musk posted on Twitter.

It is reported that Musk publicly endorsed an anti-Semitic tweet last week, supporting the notion that Jewish people actively incite hatred against white people and attempt to replace white people with conspiracy theories, which has sparked criticism and led to many advertisers distancing themselves.

Leesha admitted that leaders of social media platforms must act cautiously in terms of personal beliefs or political stances, as these choices will inevitably face public scrutiny.

X Accuses Media Watchdog Group of Maliciously Disrupting X-Advertiser Relations

Linda Yaccarino, who took over as CEO of X in June this year, believes that the issue should be attributed to a report from media watchdog group Media Matters:

Media Matters indirectly manipulated algorithms, causing IBM and Apple ads to appear alongside racist and provocative content.

In addition, Musk, on behalf of X, has filed a lawsuit against Media Matters accusing them of being an "evil organization" and attempting to disrupt the cooperation between X and advertisers:

I stand by my principles! Any "meaningless advocacy organization" is attempting to suppress freedom of speech, and they should remember that karma is real.