Hard data disputes the recent rosy proclamations about advertisers returning to X.
The social media platform’s monthly U.S. ad revenue has declined “at least 55% year-over-year each month” since Elon Musk bought what was then known as Twitter nearly a year ago, Reuters reported, citing third-party data
X CEO Linda Yaccarino, who last week predicted that the platform would turn a profit in 2024 on the basis of “90% of the top 100 advertisers” returning, and claimed 1,500 brands had returned to the platform in the previous 12 weeks.
Yaccarino, whose leadership role alongside Musk has been the subject of much speculation, is slated to meet on Thursday with banks that helped finance Musk’s $44 billion buyout, the news service reported. She is expected to outline the company’s business plans for the financiers, it said, citing a person familiar with the plans.
Advertisers fled after Musk’s takeover and subsequent elimination of much of its content moderation, leading to a spike in hate speech. He brought Yaccarino, the former NBCUniversal chairman of global advertising and partnerships, on in May because of her longstanding relationships in the field.
By December, less than two months after Musk bought the platform, U.S. ad revenue had dropped by 78% compared with the same month in 2021, Reuters reported, citing data from ad analytics firm Guideline, which tracks advertising spending data from major ad agencies.
That was the steepest monthly decline since the acquisition, the report said.
But in August 2023, ad revenue remained down 60% year-over-year, the report said.
That figure tracks with a comment last month by Musk amid a threat to sue the Anti Defamation League, in which he blamed the anti-hate group for a 60% plunge in U.S. advertising.
The latest data joins an ongoing stream of reports that show advertisers have departed the platform. X said in August it was expanding advertising capabilities focused on brand safety, in an effort to win back the trust of advertisers.
The effort promised to grant a “new level of control,” for advertisers on the platform, including “expanding pre-bid brand safety & suitability with industry leaders,” “introducing sensitivity settings” and “bolstering blocklists for advertisers.”
But The Wall Street Journal reported Thursday that the addition of “Community Notes” — factchecking notes added by a group of volunteers — is also raising concerns among advertisers because ads have been targeted as “false” and “misleading.”
The notes launched last year but have gained steam in recent months. The negative notes have also mounted worries about how political ads will be tagged.
On top of all of this, Musk further angered publishers with his decision to remove headlines from links on posts, a change that went into effect on Wednesday.
X did not immediately respond to a request for comment.
