Platform X is facing the prospect of losing even more advertisers. This was stated by representatives of the advertising industry after Elon Musk scolded brands for abandoning the social network, writes Reuters.
“We think there is a risk that more companies will stop advertising on X; at least on a short-term basis,” said Tom Forte, an analyst at D.A. Davidson & Co.
As a reminder, during his speech at the DealBook conference, the billionaire told advertisers who stop cooperating with the platform to go fuck themselves. He accused brands of blackmail and said that advertisers’ actions would kill X.
However, Insider Intelligence analyst Jasmine Enberg believes that it is Elon Musk’s actions that are destroying the social network.
“If anyone is killing X, it’s Elon Musk, not advertisers,” she said. “If X fails, the autopsy will reveal a series of strategic platform decisions, staff cuts, tweets, and antagonistic comments by Musk that have deprived X of its primary source of revenue.
The idea that Elon Musk would be responsible for the destruction of the platform was also supported by the head of one of the world’s largest advertising companies, who declined to be named. According to him, only one major client continues to advertise on X.
Meanwhile, the platform may lose not only corporate advertisers but also money from political advertising. Reuters cites the example of the digital marketing agency Authentic, which works with candidates from the US Democratic Party, including President Joe Biden.
The agency’s CEO, Mike Nellis, said he plans to talk to all his clients about whether to spend money on X. According to him, Elon Musk’s scolding of advertisers could be “the last nail in the coffin.”
Instead, X CEO Linda Yaccarino wrote in a memo to the staff that Elon Musk’s interview was “frank and insightful” and encouraged employees to watch it. She also reiterated that X’s mission is to be an open platform without censorship.
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