According to a recent Financial Times report, X is shifting its focus to small and medium-sized advertisers to stabilize revenue, following Elon Musk’s controversial remarks at the New York Times DealBook Summit, which led to major brands pulling out due to concerns over antisemitic content.
Musk had warned that losing big advertisers could spell the end for X, stating, “What this advertising boycott is going to do is it’s going to kill the company.”
Contrary to Musk’s dire prediction, a company representative now emphasizes that catering to small and medium businesses was always part of the plan, and they will further prioritize this segment. However, skepticism remains, with some viewing this statement as a potential spin.
The reality is that X may not have an alternative, given that several large brands are unlikely to return. The New York Times reported that many marketing agencies confirmed they would not resume advertising on X, and some temporary pauses could become permanent.
Around 200 advertisers, including big brands like Apple, Disney, and Walmart, ceased spending on the platform after Musk endorsed an antisemitic conspiracy. Musk’s attempts to clarify his remarks did little to mitigate the damage, and the departure of prominent advertisers may have lasting repercussions.
During the DealBook Summit, Musk stated that if X fails due to an advertiser boycott, it would be the advertisers’ fault, challenging them to justify their stance to the public. However, there’s uncertainty about whether Musk would allow X to fail, given his substantial resources. Musk’s response suggested a willingness to let the company fail if an advertiser boycott was the cause.
The company’s CEO, Linda Yaccarino, has faced calls to resign but has supported Musk, emphasizing that principles will not be compromised.
