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Brazil’s highest court has recently affirmed a ban on the social media platform X as reported in a short video segment.
A new survey by Kantar revealed that nearly 25% of advertisers are considering reducing their spending on the social media site X (previously known as Twitter) next year. This anticipated reduction is the most significant withdrawal from any leading advertising platform noted by the research firm.
This shift comes as X has seen a significant departure of advertisers over the last year, with major corporations like Apple, Coca-Cola, and Disney pulling their advertisements from the site in 2023. Some of these companies reduced their spending after the platform’s billionaire owner, Elon Musk, supported an antisemitic post last year.
The advertising troubles for X have persisted into 2024. Earlier this month, the World Bank stopped all its paid advertisements on X following a CBS News investigation, which discovered that the World Bank’s ads were displayed alongside a racist post from a user frequently posting neo-Nazi and white nationalist content.
Jerrad Christan, the Democratic candidate for Ohio’s 12th district, also withdrew his campaign advertisements from X after they appeared under antisemitic posts. Tim Cox, the communications director for Christian’s campaign, expressed concern to CBS News, stating, “We knew our ads were being shown in replies and on profiles, but we had no idea they were being served under these types of accounts or posts.” Despite setting the ads’ brand safety to ‘limited’, which X claims is optimal for brands with strict content sensitivity, it proved ineffective.
Kantar based its survey findings on responses from 18,000 consumers across more than 24 markets and 1,000 senior marketing executives worldwide.
In response, X told CBS MoneyWatch that it now provides enhanced brand safety, performance, and analytics capabilities, claiming a brand safety rate of about 99% as verified by DoubleVerify and Integral Ads Science. According to the platform, these measures have led to a majority of advertisers increasing their investment in X, especially during significant events like the Euros and the Olympics.
Kantar’s survey also indicated a decreased trust among marketers in X since Musk’s acquisition in 2022, with only 4% of marketers viewing it as a safe brand environment, compared to 39% for Google.
Gonca Bubani, Kantar’s global thought leadership director, remarked, “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.” Bubani highlighted the need for marketers to trust the platforms they use, describing X’s environment as too unpredictable for confident brand safety.
According to Kantar, marketers now prefer YouTube for digital advertising, while consumers favor Amazon and TikTok. Amazon ads are seen as relevant and useful, whereas TikTok’s advertisements are perceived as more entertaining.