In a surprising turn of events, recent data unveiled a significant drop in advertising expenditure on Elon Musk’s social media platform X (formerly Twitter) by some of the world’s leading advertisers – contradicting statements made by the tech billionaire and Linda Yaccarino.
What Happened: Data from Ebiquity, a marketing consultancy firm, indicated that most of the world’s major advertisers have ceased spending on X. Business Insider reported on Sunday that only two out of the 70 top advertisers on X had purchased ads last month.
The data contradicts X’s CEO and Musk’s claims that 90% of the platform’s significant advertisers had returned. “This is a drop we have not seen before for any major advertising platform,” commented Ruben Schreurs, Ebiquity’s chief strategy officer.
It was previously reported that some of X’s biggest clients, including Amazon, Unilever, Coca-Cola, and IBM, have significantly cut their ad expenditure on X over the past year due to various concerns.
Moreover, ad analytics firm Guideline revealed that X’s U.S. ad revenue plummeted by 55% or more each month since Musk took over.
“We would welcome an official follow-up with supporting data in a time where trust and transparency are of critical importance,” added Schreurs.
Why It Matters: Musk had previously highlighted the impact of global events such as wars on X’s advertising revenue. He stated that ad revenue tends to drop significantly during conflict periods.
In August 2023, X reintroduced political ads and expanded its team ahead of the 2024 presidential election. This move was part of Musk’s efforts to revamp the platform.
However, the recent data indicating a steep decline in ad spending raises questions about these strategies’ effectiveness and the platform’s future. The more critical point it highlights is the possibility of the false narrative being set by the X’s owner and CEO.
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Engineered by Benzinga Neuro, Edited by Ananya Gairola
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
