Following Elon Musk's takeover, X (formerly Twitter) lost more than half of its top 100 advertisers in less than a month.
Even 2 years later, the situation hasn't really changed. The trend of companies withdrawing and spending less money on advertising has remained consistent.
This includes major brands such as Aldi Nord, Audi, Coca-Cola, Chanel, and Nestlé. But why is that?
Here are 7 reasons why brand safety on X currently seems no longer guaranteed, leading many companies and even celebrities to turn away from Twitter.
Additionally:
NEWS
NEWS
Updates on X
Update November 15, 2024
Celebrities Flee X
More and more celebrities and institutions are turning their backs on Elon Musk's platform X – including Don Lemon, Jamie Lee Curtis, FC St. Pauli, and the Berlinale. The trigger: Trump's election victory in November and the increasingly toxic atmosphere. While X loses relevance, alternatives like Instagram and Threads are booming, and the trend is rising! (Source)
Update September 9, 2024
Is Musk Spreading Propaganda for Russia?
Elon Musk is sharing content from dubious sources, such as the pro-Putin influencer network Tenet Media – to his 190 million followers. This gives massive reach to questionable posts, further fueling controversies on X and making the platform increasingly toxic for advertisers. (Source)
Update August 29, 2024
X Overrun by Sex Bots and Russian Fake Accounts
According to a Watson report, Elon Musk has turned Twitter (now X) into a 'boggy swamp' of racist influencers, sex bots, and Russian-funded pro-Trump fake accounts. Musk's self-proclaimed goal of running the platform as a 'free speech absolutist' has led to a massive increase in such problematic content. Companies and users are increasingly distancing themselves from the platform.
(Source)
Update August 7, 2024
X CEO Sues Advertisers
Elon Musk is resorting to drastic measures to combat the massive decline in advertising revenue on his platform X (formerly Twitter) by suing advertisers who have decided to halt their campaigns. These companies are boycotting X because they are dissatisfied with the direction the platform has taken since Musk's takeover. Instead of taking advertisers' concerns seriously and making the platform more attractive, Musk is attempting to recover his lost revenue through legal pressure. The lawsuit against confectionery manufacturer Mars seems particularly absurd, highlighting the extent to which Musk is willing to go to defend his failed decisions.
The case of a non-profit organization that had to shut down after being sued by Musk also demonstrates the aggressive tactics he uses to silence his critics. However, this approach could further erode trust in the platform and Musk's leadership style, potentially driving away even more advertisers in the long run.
Update August 2, 2024
Rise in Racist Demonstrations Due to Tweets on X
Reports suggest that racist demonstrations in England this summer might not have escalated as significantly if Elon Musk had not shared the false reports of right-wing agitator Tommy Robinson on X. This spread of misinformation highlights the problematic role X plays in amplifying extremist voices. (Source)
Update July 24, 2024
X's Regression: Firearms Instead of Water Pistols
About six years ago, major platforms like Apple, Meta, and Microsoft replaced the revolver emoji with a water pistol to make a statement against hate and violence. Now, X (formerly Twitter) has reversed this decision and reintroduced the pistol emoji. This reversal is perceived as insensitive, given the ongoing gun violence worldwide and the significant debates surrounding gun laws. X's decision could be seen as a step backward, as it once again brings to the forefront the negative associations linked with the pistol.
Update June 3, 2024
Is X Competing with OnlyFans?
Elon Musk's platform X, formerly Twitter, now officially permits pornographic content, including AI-generated, photographic, and animated depictions.
This decision is considered highly problematic due to the lack of effective age verification, which potentially allows minors access to this content.
Although users are required to mark such content, this provides insufficient and unreliable protection. In the EU, X could face significant regulatory difficulties as the platform does not comply with the requirements of the Digital Services Act.
Already in December 2023, the EU Commission initiated infringement proceedings against X, and the new guidelines significantly increase the risk of further sanctions.
Update April 29, 2024
Threads as the Biggest Competitor
In July 2023, Meta's version of X, Threads, was launched. Latest calculations have shown that it already boasts more daily active users than Elon Musk's X.
In April 2024, Threads was used by over 28 million users, while only 22 million users accessed X during the same period. (computerbild.de).
Update March 22, 2024
Daily Active User Numbers Continue to Decline
The majority of X's users are from the USA. A comparison from February 2023 to February 2024 reveals that 18% fewer users engage with the platform daily. Overall, the user count has dropped by 23% since Elon Musk acquired the app. (Source: nbcnews.com)
Update January 15, 2024
Freedom of Speech Under Authoritarian Governments
Although Elon Musk portrays X as a bastion of free speech, a Guardian analysis reveals that under his leadership, 83% of all censorship requests from authoritarian governments have been accepted. At the same time, Musk provides a platform for extreme voices, such as racist agitators, to spread their messages globally. This contradictory policy leads to further uncertainty among advertisers. (Source)
Update December 13, 2023
Bad news continues to accumulate from X: According to a media report from «Bloomberg» (13.12.2023 «Heise»), the short messaging service's advertising revenues plummeted to 2.5 billion dollars in 2023. This represents a nearly halving of revenues compared to the period before Elon Musk's takeover.
Result 1:
Since Elon Musk took over, X has lost almost three-quarters of its value. A financial services provider estimated the loss to date at 71.5 percent, meaning X is now worth only a fraction of the 44 billion US dollars Musk paid in late 2022. This dramatic decline in value could increase further, especially as the company's advertising revenue has significantly decreased.
Result 2:
X generated approximately 600 million dollars from advertising in the first three quarters of 2023. This represents a significant decline compared to previous years and highlights the challenges the platform is facing.
Result 3:
While X introduced a new revenue stream with its paid subscription, X Premium, this has barely offset the sharp decline in advertising revenue. According to the "Bloomberg" report, advertising still accounts for up to 75 percent of total revenue.
Update June 4, 2023
Data analysts Luca Hammer and Martina Schories investigated, on behalf of ZDF Magazin Royale, how German-speaking X (formerly Twitter) has changed since its acquisition by Musk. The key findings are:
Result 1:
Overall, the number of German-language tweets has decreased. In April 2023, 20 percent fewer tweets were published compared to April 2021.
Result 2:
Comparatively small communities are, on average, shrinking further – and tweeting less. This suggests less diversity of opinion on Twitter.
Result 3:
In April 2023, the community consisting predominantly of right-wing accounts published 64 percent more tweets than in April 2021.
Learn more in the video here and at vogel.rip
1. Lack of Brand Safety Due to Mass Layoffs
Twitter's new owner, Elon Musk, swiftly laid off more than half of Twitter's employees and top executives responsible for policy development and content moderation.
Among others, he also dismissed Vijaya Gadde, Twitter's Head of Legal Policy, Trust, and Safety.
To complicate matters further, X (formerly Twitter) has laid off its human rights team.
The former Head of Trust and Safety, Yoel Roth, told Reuters that the social media company has become less safe under new owner Elon Musk and that the company no longer has enough staff for X to operate securely. (read more here)
Consequently, these actions have raised concerns among advertisers, as brand safety can no longer be guaranteed.
Although X, under Elon Musk's leadership, has attempted to improve its platform, many companies still report insufficient moderation measures. This means brands may appear in inappropriate contexts, increasing the risk of reputational damage.
2. Extremist Accounts Due to "Amnesty"
Musk also promised to grant "amnesty" to almost all suspended accounts, including those seemingly banned for hate speech.
Recently, he reinstated the account of self-proclaimed white supremacist Andrew Anglin, founder of a neo-Nazi website.
Anglin, who was banned from Twitter in 2013, has called for the demolition of the Berlin Holocaust Memorial (which he contemptuously refers to as a "hoax") and its replacement with a 1,000-foot-tall Hitler statue.
Musk also reinstated former US President Donald Trump, courted and engaged with far-right accounts, and introduced an arbitrary verification system that allows extremists and scammers to acquire a blue checkmark.
This last step, in particular, opened the platform to a variety of fraudulent activities and brand impersonations.
The New York Times reported a 69% increase in accounts linked to the terrorist group ISIS within the first 12 days after Musk took control of the platform.
3. Discrimination
The Network Contagion Research Institute found that the use of the "N-word" increased by over 500% within 12 hours of Musk taking the helm, while reports of antisemitic, misogynistic, and anti-LGBTQ+ language became rampant.
Musk himself has spread FTX conspiracy theories, attacked the LGBTQ+ movement, and supported far-right content (more here).
4. Hate Speech
Another statistic shows that insults against Black Americans have tripled, antisemitic posts have increased by more than 60%, and insults against members of the LGBTQIA+ community have risen from 2,506 per day to almost 4,000 comments per day, all within the first two weeks since Musk took over, according to CNN.
The rise of hate speech on X is unprecedented, researchers have found. Problematic content and previously banned accounts have significantly increased in the short time since Elon Musk took over, according to researchers (read more in the NY Times article here).
5. Company Advertising on Racist Profiles
Amazon and Uber ads appeared on the X pages of far-right racists reinstated by Musk. Ads from dozens of major brands surfaced on accounts belonging to racists and extremists, as reported by the Washington Post.
6. Conspiracy Theories
In a now-deleted tweet, Elon Musk shared a link to a website featuring conspiracy theories about the attack on Paul Pelosi.
In a reply to Hillary Clinton, Musk stated that "there might be more to this story than meets the eye."
7. Chaos with "Verified Accounts"
Especially after the botched launch of the $8 X Blue subscription, which included account verification, several companies have turned away from X (formerly Twitter).
X users quickly learned they could pay $8 to impersonate high-profile accounts and companies, leading to chaos on the platform.
Which Companies Have Already Left X?
50 of the top 100 advertisers have either announced their withdrawal or stopped their advertising on X (formerly Twitter). According to Media Matters, these companies include:
American Express Company
Audi
Aldi Nord
BlackRock, Inc.
Chanel
Chevrolet
Dell
Ford
General Motors
Heineken N.V.
Hewlett-Packard (HP)
Jeep*
Kellogg Company
LinkedIn Corporation
MailChimp (The Rocket Science Group)
Mars, Incorporated
Merck & Co. (Merck Sharp & Dohme MSD)*
Meta Platforms, Inc. (formerly Facebook, Inc.)
Nestlé
Novartis AG*
The Coca-Cola Company
The Kraft Heinz Company
*Companies marked with an asterisk have issued a statement or publicly reported that they have stopped their advertisements on X. Otherwise, the companies listed here are 'silent quitters,' based on a Media Matters analysis of Pathmatics data. These companies previously advertised on X but then stopped for an extended period after direct outreach, controversies, and warnings from media buyers.
Well-known Celebrities Who Have Left X
Influencers and celebrities are leaving X for various reasons, including:
1 Elton John
"Throughout my life, I've tried to use music to bring people together. Yet, it saddens me to see how misinformation is now being used to divide our world.
I have decided to stop using Twitter because the recent policy changes allow misinformation to thrive unchecked."
2 Gigi Hadid
"I deactivated my Twitter account today. For a long time, but especially with the new leadership, it has increasingly become a cesspool of hate and bigotry, and that's not a place I want to be a part of."
Read more here: https://people.com/style/gigi-hadid-quits-twitter/
3 Moby
“This will be my last tweet. Last night, @elonmusk posted an old-right antisemitic meme, a fake @cnn story, and a picture with guns on his bedside table. @Twitter has become a cesspool for racism, antisemitism, disinformation, and foolish far-right hate, and it's time to leave.”
Source: Twitter (X)
4 Jim Carrey
"I'm leaving Twitter, but first, here's a cartoon I made with my friend Jimmy Hayward. It's based on my painting of a crazy old lighthouse keeper standing naked in a storm, summoning angels and letting his lamp shine to guide us through a treacherous night. I love you all so much!"
Source: Twitter (X)
X, yes or no?
What's your take? Should you leave X now and switch to Mastodon or Threads? Share your thoughts or questions in the comments.
As an online marketing agency, we will temporarily refrain from advertising campaigns on X (formerly Twitter) and offer attractive alternatives to our clients.