Elon still isn’t winning over advertisers

Major brands have been reducing their advertising spending on X.

Elon Musk’s decision to allow “toxic content” on X in the name of free speech comes at a cost as advertisers prepare to slash their spending on the platform.

More than a quarter — or 26% — of advertisers surveyed by market research firm Kantar say they plan to cut their spending next year, according to the report seen by B-17.

Kantar also found that only 4% of the 1,000 marketing professionals from ad agencies and media companies interviewed for the study felt that X ads offer brand safety, a stark contrast to the 39% for Google.

Overall trust with marketers for X ads has nearly halved since 2022, going from 22% to 12%. However, according to Kantar, X’s consumer ad preference has “significantly” increased since then.

Major brands and multiple advertising agencies have pulled their content from X since Musk took over in 2022 and allowed controversial content on the platform.

Disney stopped spending on X in November after other companies, including Apple, IBM, Warner Bros. Discovery, and Lionsgate, paused their advertisement spending as Musk appeared to endorse an antisemitic post.

That same month, Musk told companies who pulled their advertising from X to “go fuck yourself” during an interview for The New York Times’ DealBook Summit.

X then filed a lawsuit against a group of advertisers in August, alleging that they had violated antitrust laws by ganging up on the social media company in an advertising boycott.

X didn’t immediately respond to a request for comment from B-17, made outside normal working hours.