Advertising crisis for X: confidence not at their highest though not at their lowest as well
Advertisers are currently running away from the Platform X in what can be described as a record level of loss of confidence. Recent survey by Kantar revealed that 26% of the marketers have plans of decreasing their advertising expenditure in the platform in the coming year.
The controversies in the management of the company resulted in compromised reputation.
It is significant to know that X’s advertising business has been on the decline since Elon Musk assumed the leadership of the company. According to the Kantar’s Global Consumption Survey conducted with 18 000 consumers and 1 000 advertisers worldwide, the problem is huge. In the last year and a half, some of the biggest companies advertisers have cut or paused spending on the platform due to concerns about hate speech and toxic content.
Inflammatory statements that increase people’s disillusionment
He has also not escaped the controversy even when making his comments which some of the times are quite shocking. Especially, he said to the brands that are protesting against the hate speech, ‘If you are bothered by it then go and get seen,’ and labelled the advertisers ‘blackmailers’. Further, he rolled legal bombs that saw him sue an industry group and several global companies for what he said was an “illegal boycott” of the platform. Kantar has highlighted the fact that now only 4 % of the advertisers regard X as safe to advertise brands on.
A platform on the edge of losing even more of its advertisers’ trust
X did not reply to a request for a comment at the time of writing this article. But in response to the Financial Times, the company explained that ‘today’s advertisers understand that X has never been stronger with brand safety, performance, and analytics while the product finds itself receiving record usage.
