There are claims that X has seen its ad revenue drop to $744 million USD in the first half of 2024 - that’s 24% less than the first half of 2023.
👉 Background: Elon Musk acquired Twitter for $44 billion USD in October 2022. Since then, it has rebranded from Twitter to X, fire 6,000 staff and suffered criticism for not limiting hate speech and misinformation.
👉 What happened: Now, there are claims that X has seen its ad revenue drop to $744 million USD in the first half of 2024 - that’s 24% less than the first half of 2023.
👉 What else: A number of companies have pulled back their ad spend on X since big brands were seen to be promoted beside controversial posts, like posts pro-Nazis. And it’s fair to say that it's just a little too much brand risk for big companies looking to promote their products.
💡Brands want to be where the eyeballs are, but they also need to feel safe about the company they keep.
💡In the world of marketing, brand alignment is how well a company's advertising reflect its core values and its identity as well as the image it wants to project to its audience. But right now for brands, buying ads on X is risky.
💡So while Elon Musk has tried to give confidence to brands, the damage has already been done. And given ads make up about 90% of X’s income, it has a real predicament on its hands.
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