In an attempt to avoid a public dispute with Elon Musk
Large brands have small amounts of their advertising budget in X’s X Musk, seeking to avoid being considered to boycott the social networking platform and cause public dispute with its oligarch.
Many marketing executives have told the Financial Times that companies feel pressure to spend a nominal amount in X after the high -profile role of Elon Musk in the US government of Donald Trump. As they explained, Musk’s tactic of moving legally against those who stopped advertising in X after Twitter’s acquisition of $ 44 billion in late 2022 had also triggered an alarm. Last month, the X appealed by about 12 more companies, including Shell, Nestlé, Pinterest and Lego.
“Any amount of money is enough to stay out of the list of naughty ones,” said Lou Paskalis, chief executive of Marketing Company AJL Advisory and a former Bank of America executive in the media. “It’s not because the risk of brand safety has disappeared. But the much greater danger is that a Musk comment on the press sends the price of your shares to the Tartars, and instead of a multi -million dollar risk you are experiencing a risk of many billions of dollars, “he explained.
This move comes as X was purchased this week by the Musk Artificial Intelligence Group on a deal that assesses the social media platform at $ 45 billion, including debt. XAI has already used data from the X platform to train Grok, the chat bot that competes with platforms such as OpenAi’s Chatgpt – a company founded by Musk before leaving due to strategy differences.
Investors have been encouraged by the closeness of Musk with the Trump administration, as well as the indications that its approach to cost reduction was effective and revenue is improving.
Elon Musk and X chief executive Linda Yakarino have set a goal aimed at increasing advertising revenue back to 2022 levels, according to two people who know the issue. They believe that this is the least that X should bring without the blow caused by the brands that “boycott” or avoid the platform because of the far -right tilt policy.
According to Emarketer data, X revenue will increase to $ 2.3 billion this year compared to $ 1.9 billion a year ago. However, world sales in 2022, when the group was known as twitter and Musk took over, was $ 4.1 billion.
Total advertising expenditure in the US for X decreased by 2% in the first two months of 2025 compared to a year ago, according to data from the Sensor Tower market research group, despite the recent return of groups such as Hulu and Unilever.
Source: lifo.gr