Elon Musk’s X Sees Advertiser Exodus Amid Eroding Trust, Survey Finds

According to a recent survey conducted by Kantar, around 25% of advertisers are planning to reduce their spending on the social media platform X, previously known as Twitter, in the coming year. This potential decline represents the largest recorded reduction in advertising expenditure among major ad platforms, as noted by the research group.

The survey results highlight ongoing difficulties X has been experiencing with advertisers throughout the past year. Major brands, including Apple, Coca-Cola, and Disney, have already stopped running paid advertisements on the platform in 2023. Some of these companies decided to decrease their spending in response to controversial actions, particularly after the platform’s owner Elon Musk publicly supported an antisemitic post last year.

The advertising troubles for X persisted into 2024, exacerbated by a recent incident involving the World Bank. This organization halted all of its paid advertising on X after a CBS News investigation uncovered that its ads were appearing alongside racist content from accounts known for promoting neo-Nazi and white nationalist ideologies.

Furthermore, Jerrad Christian, a Democratic candidate for Ohio’s 12th district, also withdrew his campaign ads from X, noting they too appeared next to antisemitic content. Tim Cox, the communications director for Christian’s campaign, expressed concerns over the platform’s ad system, explaining that while they were aware their advertisements would be displayed in replies and profiles, they had no knowledge they were appearing near such objectionable accounts or posts.

Cox elaborated that their brand safety settings were set to “limited,” which X claims is suitable for brands with strict requirements regarding ad placement. He remarked, “Clearly, this brand safety tool is not working,” indicating dissatisfaction with the measures in place.

The survey conducted by Kantar involved interviews with 18,000 consumers across more than 20 markets and included feedback from 1,000 senior marketing executives worldwide. As for X, the platform did not immediately respond to requests for comments regarding these findings.

Trust in advertising on X has significantly diminished since Musk’s acquisition of the platform in 2022. Kantar’s survey revealed that merely 4% of marketers believe X offers adequate brand safety, compared to 39% for Google, which maintains the highest rating among advertising platforms for brand safety.

Brand safety refers to practices that help safeguard a company’s reputation by ensuring that advertisements are not placed alongside inappropriate content. The survey findings suggest that X may face challenges in enticing advertisers back, a crucial task that CEO Linda Yaccarino is actively pursuing.

Gonca Bubani, Kantar’s global thought leadership director, commented on the situation, stating, “Advertisers have been moving their marketing spend away from X for several years. The stark acceleration of this trend in the past 12 months means a turnaround currently seems unlikely.” She further noted that marketers have to be confident in the platforms they choose to work with, asserting, “X has changed so much in recent years and can be unpredictable from one day to the next — it’s difficult to feel confident about your brand safety in that environment.”

In terms of advertising preferences, marketers noted that their top digital brand remains YouTube, while consumers identified Amazon and TikTok as their favored platforms. According to consumer feedback, ads on Amazon are regarded as relevant and useful, whereas TikTok ads are seen as more entertaining.