Why Advertisers Are Leaving X and Staying on Meta: The Impact of Elon Musk’s Attitude

The Advertising Exodus

Elon Musk's 'attitude' is causing an exodus of advertisers from X, while Meta's pedophile problem hasn't seen the same response. Several major brands have stopped marketing on X after a report revealed that their ads appeared next to pro-Nazi posts. On the other hand, only two brands have distanced themselves from Meta after ads were found next to suggestive photos of children. This discrepancy in advertiser response can be attributed to Musk's attitude and its impact on the two platforms.

Different Approaches to Brand Safety

Social media advertisers are taking different approaches to hosting their content on Meta's Facebook and Instagram compared to Elon Musk's X. Both tech giants have faced heavy criticism for questionable content found on their platforms. The Wall Street Journal recently published two reports highlighting Meta's problem with preventing pedophiles from being promoted on Instagram and Facebook, as well as detailing how brand-sponsored advertisements end up next to explicit content on Meta's platforms.

Despite these findings, only two brands, Bumble and Match, have distanced themselves from Meta's platforms. In contrast, X experienced a mass exodus of advertisers after ads were displayed next to pro-Nazi posts, and Musk made comments criticized as being antisemitic. Representatives for Meta, X, and Match did not immediately respond to requests for comment from Business Insider. Bumble, however, released a public statement stating that it would suspend its ad campaigns across all Meta platforms and did not mention whether they would resume ads with Meta in the future.

Musk's Controversial Behavior

Elon Musk has faced criticism for his behavior, particularly after responding to a post on X that contained antisemitic undertones. His response was widely criticized as being antisemitic as well, as the original post hinted at the "great replacement" conspiracy theory. Musk later apologized for his comments.

Media Matters for America, a watchdog group, published a report revealing that ads on X were displayed alongside pro-Nazi posts, which led to brands like IBM, Apple, Lionsgate, and Warner Bros. Discovery suspending their marketing campaigns on the platform. Musk, instead of addressing the issue of antisemitic content, filed a lawsuit against Media Matters for making these claims.

Differences in Brand Response

According to advertising experts, brands' responses to Musk's X and Meta platforms differ due to the striking difference in tone taken by the leadership of each company. While Meta has assured marketers that it is ramping up efforts to combat exploitative content on Facebook and Instagram, Musk has doubled down on his controversial behavior, undermining any reassurances made by Meta's CEO Linda Yaccarino.

Musk's unfiltered and unhinged communication style has caused further damage to the relationships between brands and X. Brands that advertise on X already had concerns over Musk's acquisition and his overhaul of content moderation policies. Instead of addressing concerns about antisemitic content, Musk's behavior has worsened these relationships.

The Impact of Attitude

The difference in brand response to Musk's X and Meta platforms can be attributed to attitude. Meta appears to be actively working on combating exploitative content, calming the nerves of concerned marketers. However, Musk's controversial remarks and cuts to content moderation teams on X have made it more difficult for brands to trust the platform.

While X claims that roughly $11 million in advertising dollars are at risk following the exodus of major brands, The New York Times estimates the potential losses to be closer to $75 million. Even if Musk manages to keep X financially afloat, his antagonistic stance toward advertisers and the divisive nature of his public comments may drive customers away from his other brands, such as Tesla.

Overall, the impact of Elon Musk's attitude on advertisers leaving X and staying on Meta is evident. Brands are reluctant to associate themselves with someone whose views may alienate their customers or employees. Musk's personal brand is too controversial for many marketers, which undermines the appeal of X as a platform.

Read the original article on Business Insider.

—————————————————————————————————————————————
By: ktangalakislippert@businessinsider.com (Katherine Tangalakis-Lippert)
Title: Why Advertisers Are Leaving X and Staying on Meta: The Impact of Elon Musk’s Attitude
Sourced From: www.businessinsider.com/elon-musk-personality-attitude-problem-advertisers-x-meta-facebook-instagram-2023-12
Published Date: Sat, 09 Dec 2023 15:07:01 +0000