A significant number of advertisers plan to reduce their spending on Elon Musk-owned X in 2025. This decision stems from concerns about the platform’s association with contentious content.
What Happened: The survey by analytics group Kantar revealed that a net 26% of marketers intend to cut their advertising budgets on X next year. This marks the largest recorded pullback from any major global advertising platform, reported the Financial Times.
Since Musk’s $44 billion acquisition of X, formerly known as Twitter, in 2022, many major brands have withdrawn their advertising. They cite Musk’s decision to relax content moderation as a primary reason for their departure.
The Kantar survey also highlighted a steep decline in advertiser trust, with only 4% of marketers considering ads on X to be “brand safe.” In contrast, 39% of marketers felt that way about Alphabet Inc.’s Google.
An X spokesperson countered these findings, stating that the platform’s brand safety rate is “on average 99% as validated by DoubleVerify and Integral Ad Science.” The spokesperson also noted that consumer ad preference for X has significantly increased since 2022, according to the report.
The Kantar study is based on interviews with 18,000 consumers in 27 markets and 1,000 senior marketers globally.
Earlier in April, Musk revealed X’s surprisingly low advertising costs, hoping to attract budget-conscious advertisers despite ongoing controversies. This move was seen as an effort to make the platform more appealing to a broader range of advertisers.
In September, X won an appeal against a California law that required social media companies to disclose their content moderation policies. Musk celebrated this victory as a win for freedom of speech, which he considers fundamental to democracy.
Additionally, Musk’s legal battles have extended beyond the U.S. Recently, SpaceX reportedly evacuated employees from Brazil due to Musk’s legal issues with Brazil’s Supreme Court over his social media platform X.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
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