Report Alleges Elon Musk’s X Will Lose Advertisers Next Year, Further Depressing Revenue

The troubled social media platform X is expected to face even greater losses in advertising revenue next year. It raises the question of how many more brands will abandon the site before it crumbles under the weight of debt and offensive content.

On Thursday, marketing research firm Kantar released a report evaluating the advertising prospects for several major online platforms. While well-known sites like TikTok and Netflix enjoy strong trust from advertisers, the platform formerly known as Twitter is increasingly seen as unreliable. Consequently, X will likely experience a further departure of advertisers in the coming year.

“One brand that marketers are particularly wary of is X. Just 4% of marketers believe that ads on X ensure brand safety, in stark contrast to the 39% trust that Google commands,” the report states. “Overall trust in X ads has plummeted from 22% to 12% since 2022. While 15% of marketers had a positive view of X ads in 2022, now 21% have a negative perception. The decline in marketers’ confidence in X didn’t begin with Musk, but the trend has remained consistent since his acquisition.”

The report also mentions: “26% of marketers worldwide now intend to cut their spending on X in 2025.” Interestingly, the reduction in ads on X appears to have made users more satisfied. “The drop in marketing expenditure on X has led to happier consumers as the ad volume decreases. Consumer preference for ads on X has significantly increased since 2022.”

It’s important to highlight that Musk’s platform has already suffered a staggering loss of revenue, likely due to its unusual policies and the founder’s increasingly unpredictable actions. “Advertisers have been shifting their budgets away from X for several years,” said Gonca Bubani, Kantar’s global thought leadership director for media, in an interview with CNN. Bubani also noted that “a recovery of advertising funds seems unlikely at this time.”

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