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Walmart Quits Twitter Advertising, Adding Another Blow to the Platform
In a surprising move, retail giant Walmart announced its decision to pull its advertising from X, formerly known as Twitter. The company joins a growing list of brands that have recently taken the same step, citing unsatisfactory ad performance on the platform. This decision comes amidst a wave of controversy sparked by Elon Musk’s speeches and leaves many questioning the future of advertising on X.
Walmart revealed that its advertising suspension coincided with the holiday shopping season but emphasized that it wasn’t due to a change in their advertising policies. Instead, the decision was made in response to the underwhelming outcomes of their ad campaigns on the platform. The retail giant had been gradually reducing its advertising spending since October, with the last ads being circulated around Thanksgiving Day.
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The woes for X did not end there. Elon Musk, the controversial figure at the center of several recent controversies, was accused of anti-Semitism, which prompted IBM to withdraw its advertising on the platform. Musk’s statements also led to several other prominent companies, including Disney and Apple, suspending their ads on X in November. His description of an anti-Semitic remark as “the real truth” and criticism of the Anti-Defamation League were met with widespread condemnation.
In yet another blow to X’s reputation, it was reported that the platform had placed ads for certain companies next to posts supporting Nazis. This revelation prompted IBM to pause its advertising spending, as it did not want its brand associated with such controversial content. The incident was brought to light by Media Matters, which subsequently released a report detailing the issue.
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During this week’s DealBook Summit in New York, Musk made headlines once again by publicly criticizing X’s advertisers, using explicit language in the process. “If anyone tries to blackmail me with publicity, fuck off,” Musk declared. He expressed concerns that the advertising boycott could potentially “kill the company”. These remarks further exacerbated the already tense relationship between Musk and advertisers on the platform.
The challenges faced by X in retaining advertisers can largely be attributed to Musk’s approach to content management and moderation. Since Musk acquired the platform last year, concerns have grown regarding the platform’s ability to handle controversial content appropriately. Advertisers are increasingly wary of being associated with a platform that seemingly tolerates hate speech and promotes divisive ideologies.
Despite the setbacks, Walmart’s decision to cut advertising costs aligning with performance opens up the possibility of future ads on X. Joe Benarroch, X’s Chief of Commercial Operations, revealed that Walmart has actively engaged with its community of over one million people on the platform, indicating a potential path forward for both parties.
The fate of X as an advertising platform remains uncertain, with advertisers becoming more cautious and demanding greater transparency and accountability. It is evident that Musk’s rhetoric and controversies have taken a toll on the platform’s reputation. As the technology and advertising landscape continues to evolve, it is crucial for platforms like X to adapt and address the concerns of advertisers, or risk losing them to competitors offering a safer and more brand-friendly environment.
