Maya Robertson
In a significant shift, major U.S. corporations, including Walt Disney and Comcast, have reportedly increased their advertising investments on Instagram following a temporary hiatus on X. The move comes as advertisers distance themselves from the social media platform, owned by Musk, due to concerns over antisemitic content.
According to data from Sensor Tower (via Reuters), Disney and Comcast upped their advertising spending on Meta-owned Instagram by approximately 40% and 6%, respectively, during the two weeks starting from November 20. In a parallel move, Paramount tripled its spending on Snapchat during the same period.
These statistics underscore the mounting challenges faced by Musk, who, in late November, launched a profanity-laden tirade against advertisers that had withdrawn from X (previously known as Twitter).
Musk has witnessed a series of advertisers abandoning the platform since he endorsed an antisemitic post that falsely accused members of the Jewish community of fueling animosity against white individuals. Despite issuing an apology for sharing the post, Sensor Tower’s data reveals that, as of November 2023, 51 of the top 100 U.S. advertisers on X since Musk’s acquisition in October of the previous year have ceased ad spending on the platform.
According to a recent Bloomberg News report, X is expected to undergo a substantial decline in ad sales, estimated to drop to around $2.5 billion for the year 2023.
In July, Elon Musk highlighted Twitter’s negative cash flow, citing a nearly 50% decline in advertising revenue and significant debt. Subsequently, X CEO Linda Yaccarino, in September, mentioned that the platform is nearing the break-even point and anticipates turning a profit in early 2024. The existing hurdles faced by X emphasize how controversies and changes in leadership strategy have influenced the platform’s financial prospects.
Comments
Loading…