After pausing ad spending on Elon Musk’s social media platform X (formerly Twitter), big tech U.S. companies, including The Walt Disney Co. DIS and Comcast Corporation CMCSA, have reportedly increased the same on Meta Platforms Inc.’s META Instagram.
What Happened: As per a report by Sensor Tower, Disney, and Comcast have increased the money they put into Mark Zuckerberg’s Instagram by 40% and 6%, respectively, in the two weeks from Nov. 20, reported Reuters.
Meanwhile, Paramount Global PARA has spent three times more money on Snap Inc.’s SNAP Snapchat.
See Also: Tesla CEO Elon Musk Mocks Mark Zuckerberg’s $36B Metaverse Gamble: ‘Genius Move’
For the uninitiated, earlier this year, after Musk endorsed a debunked anti-semitic conspiracy theory on X, advertisers like Apple and Disney started fleeing his platform.
While the tech mogul later apologized for it, he also used profanities against the advertisers, saying, “If someone is going to blackmail me with advertising or money, go f**k yourself. Go. F**k. Yourself.”
Last month, Musk clapped back at the same advertisers when a report alleged that Instagram was suggesting sexualized content of minors via Reels.
Why It’s Important: Numbers showcase challenges faced by the Musk-owned social media website.
Earlier this week, a report revealed X could face a significant downfall in ad revenue this year as the company is projected to amass only $2.5 billion — a substantial decline from previous years.
In October, it was reported that Musk’s social media platform is now valued at half the purchase price, which was a whopping $44 billion.
The reasoning behind the decline was largely considered the tech billionaire’s chaotic leadership and advertisers’ concerns about content-safety rules on the platform.
Photo by Kathy Hutchins and Frederic Legrand – COMEO on Shutterstock
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