X Users Complain About Dubious Ads as Major Advertisers Leave Platform

Unintended Consequences of Elon Musk's War on Advertisers

Some X users are expressing their frustration with the increasing number of ads on the platform promoting questionable cryptocurrency and AI "undressing" apps. Experts in social media and advertising have revealed that this decline in ad quality on X is a result of major advertisers leaving the platform, which has made the site more reliant on less reputable buyers.

Users have been actively calling attention to the prevalence of these low-quality ads, even going as far as adding community notes to warn other users about the potential risks of engaging with them and potentially losing money.

In addition to the dubious cryptocurrency ads, users have also noticed a surge in ads for AI "undressing" apps, which use artificial intelligence to generate fake naked images of real people. These ads are in violation of X's terms of service, as they promote adult sexual content. Furthermore, these tools have the potential to be used for harmful activities such as sextortion and targeted harassment campaigns, as warned by social media analysis firm Graphika.

X has not responded to requests for comment regarding these ads.

Effect of Major Advertisers Leaving X

While the appearance of questionable ads on social media platforms is not uncommon, the departure of major advertisers has left X more dependent on smaller, less reputable ad buyers. Jeff MacDonald, the social strategy director at ad agency Mekanism, believes that the presence of undressing ads winning placement bids on X is evidence of the absence of large advertisers. He also points out that this demonstrates the decline of the X platform as a whole.

Last month, ads promoting "semen stealing" were reported to be appearing on X, indicating that the platform may still have a long way to go in addressing the issue.

According to Hamza Mudassir, a strategy consultant and lecturer at Cambridge University, suspicious ads can be found on all social media platforms. However, he emphasizes that X's situation is exacerbated by the departure of major advertisers, leading to a higher frequency of questionable ads and an unpleasant experience for genuine users.

X's Brand-Safe Environment and Revenue Challenges

Elon Musk's behavior on X has led mainstream advertisers to take action. Following Musk's endorsement of an antisemitic post, companies such as Apple and Disney decided to halt their spending on the platform. Musk's controversial response to these actions further alienated advertisers.

Since Musk took over the platform, he has reduced X's content-moderation team and allowed figures like Alex Jones, previously removed for abusive behavior, back onto the platform. These actions have made advertisers increasingly uncomfortable.

"The fact that X has made it abundantly clear that it has no desire to create a brand-safe environment has only solidified our recommendations to move to growing platforms with better opportunities for organic discovery," said MacDonald.

The departure of advertisers has resulted in a significant loss of revenue for X. Internal documents obtained by The New York Times show that the company could potentially lose up to $75 million in ad revenue by the end of 2023.

In an attempt to offset the loss of major companies like IBM and Walmart, X is targeting smaller businesses and aiming to generate $100 million in political ads during the 2024 election year. However, experts predict that the decline in revenue may still persist, even with the introduction of low-quality ads, small businesses, and political advertisers.

As X becomes more desperate to attract advertisers, advertising costs are dropping, which has led to an increase in lower-quality ads on the platform. However, it remains uncertain whether these efforts will be enough to bridge the revenue gap left by the departure of major advertisers.

In conclusion, X users are expressing their dissatisfaction with the growing number of dubious ads on the platform, including promotions for cryptocurrency and AI "undressing" apps. The decline in ad quality is a direct result of major advertisers leaving X, leaving the platform dependent on less reputable buyers. This situation has created a challenging environment for genuine users and has contributed to a significant loss of revenue for X. The platform is now striving to attract smaller businesses and political advertisers to offset the revenue decline, but it remains to be seen whether these efforts will be successful.—————————————————————————————————————————————
By: tcarter@insider.com (Tom Carter)
Title: X Users Complain About Dubious Ads as Major Advertisers Leave Platform
Sourced From: www.businessinsider.com/advertisers-left-x-crypto-ai-undressing-apps-2024-1
Published Date: Sat, 20 Jan 2024 10:37:01 +0000