Tech Desk 
Nov 17, 2024
After a year-long break, giant brands like Disney, IBM, Warner Bros. Discovery, Comcast, and Lionsgate Entertainment all have resumed advertising their content on X (formerly known as Twitter). In late 2023 these companies paused their content moderation on X.
Despite their comeback, these companies have reduced their budget from their advertising, as the total ad revenue spent by these companies between January and September 2024 was $ 3.3 million, which marks a 98% drop as compared to the $170 million spending during the same period last year.
The boycott began in November 2023 after various major brands pulled off their ads, citing the platform contained content based on anti-semitisms and hate speech When Elon Musk allegedly inscribed an antisemitic conspiracy theory.
Reportedly, the appearance of such ads on X led many Jewish leaders and activists to stop advertising their content on the platform.
Read more: Bluesky, Threads, and X: Rise of decentralised social media
Critics argue that Ad suspension from major companies like Disney, IBM and Amazon was witnessed under Elon Musk’s leadership because he followed harmful content moderation. The traditional brands pulled back, while smaller advertising companies like Karma Shopping, Candles, and Kueez spent over $68 million in 2024 on X.
X to favour smaller brands' ads
This drastic shift indicates X’s potential for their hinge towards a “long-tail” advertising strategy, focusing on smaller brands with less competition.
As suggested by Chief Product Officer of X Meghan Fraze, X’s shift could benefit smaller brands to help them reach the audience they are looking for, rather than competing with larger companies.
Return of major advertisers
Elon Musk publicly thanked the X CEO Linda Yaccarino for her efforts in rebuilding the trust of the major advertisers and enhancing their content moderation. IBM is still cautious in its stance, just like other companies like Disney, Comcast, and Warner Bros Discovery.
Elections can affect the advertising dynamics of X, especially regarding the ties Elon has with the newly elected President Donald Trump based on the political landscape brands may need to reassess their strategies.
