Mark Cuban Challenges Elon Musk On Twitter Ad Efficacy: 'That's The Real World Today'

Billionaire entrepreneur and sports team owner Mark Cuban has clashed with the world's richest person Elon Musk on several occasions.

In their latest battle, Cuban is asking questions about the impact of advertisements on social media platform X, formerly Twitter.

What Happened: Since acquiring social media platform Twitter for $44 billion in 2022, Musk has implemented various changes, including a plan to share advertising revenue with creators. However, this initiative might face challenges as advertisers are leaving the platform.

Cuban took to Twitter to share his concerns regarding the effectiveness of advertisements on the platform.

"If advertisers were getting results from their X ads, or possibly if you posted data that showed that ads on this platform were effective and produced results, you would be in an entirely different position," Cuban said.

The comment from Cuban came in response to a post by Musk calling Newsguard a "propaganda shop" that produces lies. The X Safety account on the platform said that Newsguard is preparing to release a report on misinformation on X.

"If your ads produce results, businesses would tell you they understand how difficult it is to completely eliminate hate on the platform. If they don't produce results, there is no reason for a big company to f*** around and find out that their ads showed up next to a hateful post."

Cuban told a user on Twitter that multiple portfolio companies of his have advertised on the social media platform.

"Without exception, all have said it doesn't give the same returns as other platforms."

Related Link: Mark Cuban Weighs In On Elon Musk’s Twitter Influence: ‘Home Of Free Speech’ Or ‘State Intervention’?

Why It's Important: Cuban's comments come after a number of advertisers have suspended their campaigns on the social media platform. This decision by advertisers is in response to a controversial post that Musk engaged with, as well as worries about their ads appearing alongside antisemitic content.

Cuban used one of the more popular Twitter ads to illustrate his example.

"I can't tell you how many times I get Cheech, (or is it Chong?) ads for CBD gummies. S*** I would never buy…On other platforms ads sometimes are eerily relevant to my interests. That never occurs on this platform. Agree or disagree, that's the real world today," Cuban said.

Many Twitter users recognize the reference to the ads for cannabis gummies from Cheech and Chong, which have been highlighted by the Benzinga Cannabis team previously.

Cheech & Chong's Global Holding, parent company of the cannabis gummies, spent between $250,000 and $500,000 per month for Twitter ads earlier this year.

Twitter became the first social media platform to allow cannabis advertising, which led to the brand trying to take advantage of the new advertising medium.

Speaking at the Benzinga Cannabis Capital Conference, an X employee discussed the impact of the cannabis ads on the platform.

Alexa Alianiello, who works on sales and partnerships at X, said that cannabis companies were taking advantage of advertising on X, where there have been over 20 million posts about cannabis in 2023.

Cuban's comment about advertisements on other platforms being "eerily relevant" to his interest could also prove familiar to users on platforms like Facebook and Instagram, units of Meta Platforms META, which often feature ads for products that users have searched for online or spoken about while using their computer or phone.

Cuban’s observation that advertisements on other platforms, such as Facebook and Instagram, part of Meta Platforms META, are often "eerily relevant" with his interests, is a sentiment likely shared by many users. These platforms frequently display ads for products that users have recently searched for online or discussed while using their computer or phone.

At the time of writing, Musk has not responded to Cuban's post.

Read Next: Elon Musk's Decision To Allow Cannabis Ads On Twitter

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