The financial fortunes of Elon Musk’s social media platform X are facing another blow as a record number of firms plan to cut advertising spend on the platform next year. A global survey by market research firm Kantar revealed that a net 26% of marketers intend to decrease their spending on X in 2025, marking the biggest recorded pullback from any major global ad platform. Concerns about extreme content on X damaging their brands have led to only 4% of marketers believing X ads provide brand safety, compared to 39% for Google ads. Advertisers have been shifting their marketing spend away from X for several years, with Kantar stating that a turnaround in this trend seems unlikely.
Consumers, however, seem to have a more positive view of ads on X due to a decrease in the number of ads on the platform. Despite Musk’s efforts to woo advertisers during the Cannes Lions festival in June, where he struck a conciliatory tone and acknowledged the rights of advertisers to choose where their ads appear, these efforts have not been successful in turning the tide. Musk filed a lawsuit against an influential ad industry body last month, claiming a conspiracy to boycott X by its members, which include major brands like Unilever and Mars. The uncertainty surrounding content moderation and the platform’s direction following Musk’s takeover in 2022 has led to big brands retreating from X.
Musk’s own controversial comments on X, including endorsing an antisemitic conspiracy theory, have further spooked advertisers and led to prominent brands halting ad spending on the platform, such as IBM, Disney, and Paramount. The lack of trust and innovation perception of advertising on X by senior marketers and consumers was highlighted in the Kantar report, based on interviews with 1,000 senior marketers and 18,000 consumers in over two dozen countries. YouTube remains the preferred ad platform for marketers, while Amazon and TikTok share the top spot for consumers. Brazilian president Luiz Inácio Lula da Silva recently commented on Musk’s “far-right anything goes” agenda, stating that the world is not obliged to tolerate it due to Musk’s wealth.
Brazil blocked X over the weekend following a Supreme Court order due to Musk’s refusal to appoint a new legal representative in the country, sparking a feud over free speech and misinformation online. Musk’s efforts to attract advertisers and improve the platform’s reputation have faced significant challenges, with the Kantar report highlighting the growing concerns among marketers about brand safety on X. The decline in ad spend on X and the ongoing controversies surrounding the platform suggest a challenging road ahead for Musk and his social media company.
