Ad Withdrawals Spur 100% Surge in Discussions Around Advertising for X Corp
Walmart is the latest company to suspend advertising on “X” (formerly Twitter). The US-based retail giant joins several prominent brands, including Apple, Sony, IBM and Disney, to withdraw advertising on the social media platform, in response to Elon Musk’s endorsement of an antisemitic conspiracy theory in November. Several other companies too are reportedly contemplating to withdraw their campaigns. These developments triggered a month-on-month 100% increase in “advertising” related discussions for company “X Corp.” over the last 30-days, reveals the Social Media Analytics Platform of GlobalData.
Smitarani Tripathy, Social Media Analyst at GlobalData, comments: “The withdrawal of leading brands from X’s advertising platform has sparked a division in the opinions of influencers. Some express dissatisfaction with Musk’s actions, highlighting concerns about the impact on advertiser confidence and the overall brand image of X. On the other hand, there are those who scrutinize the motives of advertisers, considering factors such as ethical considerations, a desire to distance themselves from controversy, or strategic business decisions.
“Walmart, among others, attributes the withdrawal of ads to Musk’s negative impact on X’s brand, while some view it as a strategic move to protect their own brands. Companies like Disney, Apple, and IBM withdrawing their ads have ignited debates on whether to commend or penalize their actions. Musk is under scrutiny, accused of causing X potential financial loss as high as $75 million.”
Below are a few popular influencer opinions captured by GlobalData’s Social Media Analytics Platform:
Rob Graham, CEO of Errata Security:
“#BoycottWalmart is trending because are confused by “free-speech”.Businesses like Walmart are pulling advertising from Twitter because it’s a business decision. Musk has tarnished the Twitter brand, and they don’t want to tarnish their own brands by being associated with Twitter..”
Mike Butcher, Editor at TechCrunch:
“The advertising community recently lost a good friend. Elon Musk murdered Twitter through his actions [which] actions have made it impossible for advertisers to invest their ad dollars”
Kees Van Der Leuno, Managing Director Common Futures:
“Walmart joins the Twitter ad boycott — this one will sting. Walmart’s decision to stop advertising comes after Musk, Twitter’s owner, told boycotting advertisers to “go …yourself”.
Mark Owen Jones, Associate Professor at Hamad Bin Khalifa University:
“Important to note this comes after IBM suspended advertising after one ad next to an anti semitic tweet. Musk is likely responding to loss of advertising revenue not any principle. He has arguably worsened Twitter’s antisemitism problem”
“An everything App is – according to this theory – not dependent on advertising. Twitter would make a cut on transactions put through its books. However, Musk just said that he wasn’t going to plug cash flow gaps indefinitely.”