As the company comes off one year of major brands pulling away over issues of content moderation, Disney, IBM, and Warner Bros. are back on X. Lesser spenders have taken advantage of their burn. Some brands are still spending ad dollars, but far fewer than before.
Major corporations that had boycotted the platform for running ads alongside hate speech and antisemitism on X have returned despite having spurned the platform for its content moderation: Disney, IBM, Warner Bros. Discovery, Comcast, and Lionsgate Entertainment are just a few of those that have advertised on the platform again despite previously avoiding doing so. However, their revival in advertising is not without hesitation based on a staggering 98 percent decrease in ad spending compared with the previous year.
Are major brands rekindling their trust in X, or is this just a cautious experiment?
The figures tell a striking story: To put that in perspective, these major companies collectively only spent $3.3 million on X from January to September 2024, compared to $170 million from January to September 2023. That’s a steep decline, given how wary brands often are of being on the platform. The boycott launched in November 2023 after wide concern over the platform’s moderation standards swelled after X owner Elon Musk was accused of promoting antisemitic conspiracy theories. They also urged several companies, including Disney and Amazon, to pull their advertisements as part of a coalition of 163 Jewish leaders.
As brands creak open their doors again, with a certain amount of caution, smaller brands have pulled a silver lining. Brands like Karma Shopping, Canles, and Kueez this year have almost doused X with nearly $68 million in ad campaigns, according to MediaRadar. Such a shift indicates a change that could signal a toss toward a long-tail advertising model, allowing other new entrants access to a now less competitive space. “This development suggests X may pivot to a long-tail advertiser strategy,” said Meghan Fraze, Chief Product Officer at MediaRadar. It would suit new brands that want to engage with an audience without major competition.”
Returning advertisers have credited Linda Yaccarino’s leadership as X CEO for resurrecting some of the lost trust of advertisers. Musk said, thanking Yaccarino and her team for their work, “Just want to say that we super appreciate major brands resuming advertising on our platform! Thanks, @lindayaX and the whole X team, for your hard work in restoring confidence in our platform.”
However, not all big advertisers are optimistic about their public discourse. IBM has repeated that it is standing by its X stance. Still, while Comcast, Disney, Lionsgate, and Warner Bros Discovery have maintained silence regarding their return, they have their questions about where the platform goes from here.
The outcome of the 2024 US elections could also change how these companies approach advertising on X. Given Elon Musk’s close relationship with President-Elect Donald Trump, brands may have to rethink content moderation and messaging strategy due to an ever-changing political landscape. The phenomenon speaks to more sophisticated advertising dynamics, where traditional brands gingerly reenter while newer entrants exploit the holes being left behind.
Images credit: Furkan Demirkaya/Flux AI
