Ad Revenue Plummets at Elon Musk's X
Ad revenue at Elon Musk's X, formerly known as Twitter, has seen a significant decline this year, according to a recent report by Bloomberg. The company is projected to generate around $2.5 billion in ad revenue for the year, a stark contrast to the more than $1 billion per quarter it earned in the previous year.
Major Advertisers Withdraw After Controversial Endorsement
The decline in ad revenue can be attributed to the withdrawal of major advertisers like Apple and Walmart. These companies pulled their ads from X after Musk endorsed antisemitic views expressed on his platform. Musk's remarks led to a backlash from advertisers, impacting the platform's revenue stream.
Musk's Offhand Remarks and Consequences
During a summit last month, Musk addressed the situation by stating that advertisers attempting to "blackmail" him should "go f*** yourself." Such derogatory remarks from the CEO have proven to be detrimental to X's ad revenue. Musk later expressed regret for responding to an antisemitic post on X, acknowledging that he should not have engaged with the individual.
Preexisting Struggles and Impact on Ad Business
Even before Musk's controversial remarks, X had been facing challenges in its ad business. Since Musk took over the company, heavyweight advertisers had already started leaving. In fact, Musk himself estimated that X experienced a roughly 50% drop in ad revenue. The departure of advertisers has further exacerbated the company's financial situation.
X's Response and Future Outlook
In response to the Bloomberg report, Joe Benarroch, X's head of business operations, stated that the article provided an incomplete view of their business. Benarroch emphasized that X is no longer Twitter and has adopted a new approach to measuring their success. The company now operates with three revenue streams and is exploring new ways to grow.
The Potential Consequences for X
If advertisers continue to stay away from X, the future looks bleak for the company. Musk himself has acknowledged the severity of the situation, stating that the advertising boycott could potentially "kill the company." The decline in ad revenue poses a significant challenge for X's sustainability and growth.
In conclusion, Elon Musk's X is facing a substantial decline in ad revenue following controversial remarks and the withdrawal of major advertisers. The company's future hinges on its ability to regain the trust and support of advertisers in order to sustain its operations and growth in the highly competitive digital advertising landscape.—————————————————————————————————————————————
By: sjackson@insider.com (Sarah Jackson)
Title: Elon Musk’s X Faces Declining Ad Revenue After Controversial Remarks
Sourced From: www.businessinsider.com/elon-musk-x-twitter-advertising-revenue-decline-report-2023-12
Published Date: Wed, 13 Dec 2023 19:35:05 +0000
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