With Outburst, Musk Puts X’s Survival In The Balance
Elon Musk’s verbal assault on advertisers whoX (formerly Twitter) threatens to sink the social network further, with the tycoon warning of the platform’s demise, just one year after taking control.
“Ifto blackmail me with advertising, go fuck yourself,” a visibly furious Musk told an interviewer in New York in front of an audience of the US business elite this week.
Muskout at advertisers who had abandoned his after Media Matters, a left-wing media watchdog group, warned big companies that their ads were running alongside posts by neo-Nazis.
Walmart on Friday was the latest to join the exodus, following in the footsteps of IBM, Disney, Paramount, NBCUniversal, Lionsgate, and others.
The latest controversy broke earlier this month when Musk declared a tweet exposing an anti-Semitic conspiracy theory as the “absolute truth.”
Musk apologized for his tweet, evento Israel to meet with Prime Minister Benjamin on Wednesday he targeted his anger squarely at advertisers.
“It doesn’t take a social media expert to know that publicly and personally attacking the people in companies that pay X’s bills isfor business,” said analyst Jasmine Enberg of Insider Intelligence.
“Most advertiser boycottssocial media companies, including X, have been short lived.
There’s potential for this one to be longer,” she added.
Musk saidbe at stake.
“What this advertising boycottkill the company,” Musk said.
“Everybody will know” that advertisers
Even before the latesta 54-percent contraction in ad sales, to $1.9 billion this year.
“The advertising exodus at X could accelerate with Musk not playingin the sandbox,” said Dan Ives of Wedbush Securities.
According to data provided to AFP by market data analysis companyof the social network’s top 100 US advertisers in October 2022 have already stopped spending altogether.
But by“you are opening yourself up for competitors to step into your territory,” warned Kellis Landrum, co-founder of digital marketing agency True North Social.
Advertisers may also choose to stay
Meta’sThreads platform and other upstarts have yet to prove worthy adversaries for the Landrum argued.
Analyst Enberg insisted that “X is not an essential platform for many advertisers, so withdrawing temporarilya pretty painless decision.”
Privately held, X does not release official figures, but all estimates point to a significant drop
SensorTower put the annual fall at 45 percent for monthly users at the start of the fourthcompared with the same period last year.
Added to this is the disengagement of dozens of highly followed accounts, including major brands such as Coca-Cola, PepsiCo, JPMorgan Bank, andmany celebrities and media personalities that have stopped or reduced usage.
big names haven’t for weeks when they used to be an everyday presence.
None of the dozen or so companies contacted by AFP responded to
In normal conditions, Twitter or X “was always much larger than its ad dollars,” said Enberg.
It was “anplace for brands and companies to connect with consumers and customers,” she said.
Even after Musk gutted the staff by two-thirds, X still has around 2,000 employees, and incurs substantial fixed costs like data servers and real estate.
Another threat is the colossal debt contracted by Musk for his acquisition, but now carried bymust meet a payment of over a billion dollars each year.
In his tense interview on Wednesday, Musk hinted that he would not come to the rescue if the cofferseven if he has ample means to do so.
“If the company fails… it will fail because of an advertiser boycott and that will bankrupt the company,” Musk said.