More Advertisers Pull Out of X Following Elon Musk’s Antisemitic Controversy

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Several major advertisers, including Airbnb, Netflix, and Microsoft, have withdrawn their advertising from X, formerly Twitter, after Elon reportedly supported an antisemitic conspiracy theory.

The company is projected to lose up to $75 million in ad revenue as brands pause or consider pulling their campaigns.

Does Elon Endorse the Replacement Theory?

As reported by The New York Times, an X user recently posted the following message,

"Jewish communities have been pushing the exact kind of dialectical hatred against whites that they claim to want people to stop using against them.”

In which Elon responded,

“You have said the absolute truth.”

The original X post has been tied to a conspiracy theory known as the "great replacement", which suggests that Jewish people want to flood the country with minorities. It also echoes the sentiments of convicted murderer Robert Bowers, who killed 11 people at the Tree of Life synagogue in Pittsburgh in 2018.

Musk has since gone on to clarify the allegations against him, posting to X,

"This past week, there were hundreds of bogus media stories claiming that I am antisemitic. Nothing could be further from the truth. I wish only the best for humanity and a prosperous and exciting future for all."

He went on to clarify X's stance on hate/hateful content:

"At risk of stating the obvious, anyone advocating the genocide of *any* group will be suspended from this platform."

But, the uproar following Musk's apparent endorsement of this antisemitic conspiracy theory has sparked serious repercussions on the company's ad revenue and advertiser sentiment.

Internal documents have revealed over 100 brands, including political candidates, have "fully paused" their advertisements on X, while dozens more are listed as "at risk".

How Will This Effect X's Bottom Line?

The fallout from Elon Musk's endorsement of an antisemitic conspiracy theory has had a significant impact on X and its relationship with advertisers.

X is reported to be at risk of losing up to $75 million in advertising revenue by the end of the year as dozens of major brands pause their marketing campaigns. With major brands such as IBM, Apple and Disney pausing their advertising campaigns last week. And, an internal document, viewed by New York Times insiders reveals "more than 200 ad units of companies from the likes of Airbnb, Amazon, Coca-Cola and Microsoft, many of which have halted or are considering pausing their ads on the social network."

According to insiders, Musk bought Twitter for $44 billion, X has seen a reported 60% decrease in total revenue.

How is X Responding to the Ad Loss?

X's CEO, Linda Yaccarino, has been campaigning for advertisers to return during the holiday period to make up for revenue shortfalls earlier in the year, targeting individual deals with celebrities and influencers.

And, X's vice president of digital marketing and social media, Leesha Anderson, said its clients steadily stopped spending on X after Mr. Musk took over and had found alternatives on platforms like LinkedIn and TikTok.

“In today’s dynamic marketplace, brands have a plethora of platform choices at their disposal for precise audience targeting...Therefore, it is imperative for the stewards and proprietors of social platforms to exercise deliberate discretion in all aspects, be it their personal beliefs or political stances, as these choices will inevitably undergo public scrutiny.”

As for Musk's comment, Yaccarino posted an official statement to X stating its "efforts to combat antisemitism".

The full post reads:

"X’s point of view has always been very clear that discrimination by everyone should STOP across the board -- I think that's something we can and should all agree on. When it comes to this platform -- X has also been extremely clear about our efforts to combat antisemitism and discrimination. There's no place for it anywhere in the world -- it's ugly and wrong. Full stop."

Conclusion

Since Musk's comment, left-wing media watchdog group, Media Matters, has sparked an investigation into the antisemitic conspiracy, reportedly showing "that ads on X from companies like IBM and Apple appeared next to posts promoting white nationalist content."

Calling Media Matters "pure evil", Musk has shared his final statement on the matter.

“The people at X are free speech defenders. We stand in solidarity with those who believe in this fundamental right and the critical checks and balances of a thriving democracy.”

Hey, I'm Hudson! I write about social media, marketing, and modern entrepreneurship. Hit follow for more stories like this one.