The internet's town square is losing some of its billboards as half of the top advertisers have left the social media platform after Musk's acquisition.
50 of the top 100 advertisers have left the app, according to a report by Media Matters for America. The brands accounted for over $2 billion in spending on the platform since 2020 and over $750 million in advertising alone, adding to a downward shift in advertising dollars. A further seven major brands, totaling $118 million of ad spending, have slowed advertising.
Quiet quitters are the majority of brands and they pull out or subtly reduce their ad spending without a public announcement. Chevrolet, Ford, Jeep, and others have made statements about their departure.
Big brands have been paying attention to Musk's changes. Omnicom Media, an agency representing big names like Apple, Mercedes-Benz, and McDonald's, was advised by global corporate advertising agencies to stop spending money on social media. Volkswagen, General GM, and General Mills all suspended their ad spending on the social networking site. The accounts of individuals and companies are being left behind.
Musk sidestepped the concerns of advertisers by saying that nothing bad would happen to the advertisements of major brands. Musk said that they all work hard to make sure there are no bad things next to the ad.
It has not been entirely successful. The failure of the "democratized" blue check has had an impact on brand images as impersonated accounts wreaked havoc on companies' social media presences.
One of the complaints about Musk's stance on the new environment is that he blames people. If I agreed to this condition, a large coalition of political/ social activist groups would not starve us of advertising revenue. The deal was broken by them.
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