Mega Millionaire Kevin O'Leary Says He Spends $2 Million A Month Advertising Everywhere But X — And It's Not to 'Blackmail' Elon Musk

Following Elon Musk's critical remarks about brands withdrawing advertisements from X, Walmart Inc. WMT has reportedly joined the list of companies halting their advertising on the platform recently. 

Musk has accused these companies of blackmail and attempting to silence his voice.

However, these companies' sentiments were echoed by prominent investor and O'Leary Ventures Chairman Kevin O'Leary, who recently expressed his doubts about the effectiveness of advertising on X during the Benzinga Fintech Deal Day & Awards that happened last month. 

Also See: Kevin O' Leary Fears Chaos Is Coming For The Economy Due To Biden Administration's Policies -- 'Let's Wake Up. Smell The Roses.'

O'Leary, renowned for his appearances on "Shark Tank," highlighted his preference for traditional media channels and other social media platforms over X, citing the latter's low advertising yields.

With a substantial monthly advertising budget of $2 million across his 40 businesses, O'Leary's decision to exclude X is a telling indicator of the platform's perceived inadequacy in delivering returns on advertising investments. 

O'Leary slammed X, saying, "That place needs a little work."

Moreover, the ripple effects of Musk's contentious statements and the subsequent corporate reactions are becoming increasingly apparent in the advertising landscape. 
Major companies like The Walt Disney Company DIS, Warner Bros. Discovery, Inc. WBD, International Business Machines Corporation IBM, and tech giants Apple Inc. AAPL and Amazon.Com, Inc. AMZN, all have either paused or completely suspended their advertisement campaigns on X.

A senior executive from a leading ad-buying agency, who opted for anonymity, revealed to Reuters that the atmosphere among X's sales representatives was tense and uncertain in the aftermath of Musk's critique. 

These representatives reportedly had little to say in subsequent discussions, indicating a possible disconnect between the platform and its key revenue drivers.

According to a report by The New York Times, the platform might face an estimated downturn of up to $75 million in ad revenue by the end of the year, as significant advertisers reassess their strategies and partnerships. 

The situation underscores the delicate balance social media platforms must maintain with advertisers, who are essential to their revenue streams and overall sustainability.

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