X is estimated to suffer further losses after Elon Musk goes berserk

Jakarta –

Social media platform This is because Elon Musk was angry after many large companies flocked to withdraw advertising from the platform.

Previously, Walt Disney and Warner Bros., Discovery and several other big brands suspended their advertising on X at the beginning of November. The suspension follows Elon Musk’s support for antisemitic posts on Israel’s military aggression against Gaza.

“We believe there is a risk that more companies will stop advertising on X, at least in the short term,” said Davidson & Co analyst Tom Forte, quoted by Reuters, Sunday (3/12/2023).

Musk apologized for the upload. However, he also criticized and uttered inappropriate words at advertisers who withdrew from X. This attitude is what advertising experts believe could make more companies abandon X.

Musk also admitted that a prolonged boycott by advertisers could make X go bankrupt. Even so, he believes the public will blame the brand, not him.

However, an analyst from Insider Intelligence Jasmine Enberg denied Musk’s statement. He said if anyone ‘killed’ X, it would be Elon Musk, not advertisers.

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X not only loses advertisers, but also money from political candidates. One of the political advertising trackers, AdImpact, projects that political advertising spending in the United States in the 2024 election will reach US$ 10.2 billion or around Rp. 157 trillion (exchange rate Rp. 15,480).

As a result, the CEO of Authentic, a marketing agency that consults Democratic political candidates, including US President Joe Biden, Mike Nellis, plans to talk to all his clients about whether to advertise on X or not.

The reason is, X was criticized for his weakness in moderating content that was deemed critical of Israel’s attack on Gaza. Advertisers don’t want their ads to appear next to ‘inappropriate’ content.

As a result, advertising spending for X in the US from January to October decreased by 64% compared to the same period last year.

Apart from advertisers, active Twitter users also withdrew. Active users in the US have fallen by 19% since Musk acquired the social media platform last year.

(rrd/rir)