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X Faces Uphill Battle in Advertising Revenue as Marketers Withdraw

The social media platform X is experiencing increasing challenges in its advertising sector, according to a recent report from Kantar, detailed in an article published by Advanced Television. The findings indicate that 26 percent of marketers are planning to reduce their ad spending on X in the next year, citing that trust in the platform is at a “historically low” level.

Kantar’s insights are drawn from extensive feedback, interviewing 18,000 consumers and 1,000 marketers globally, revealing a stark downturn in X’s advertising viability since Elon Musk’s acquisition of the platform. Over the past 18 months, various prominent brands have either paused or decreased their advertising budgets due to growing concerns about hate speech and other detrimental content that has surfaced on the site.

The tensions between Musk and prominent advertisers have heightened, with Musk making headlines for confrontational remarks directed at brands. He has dismissed concerns over hate speech with statements that have turned many advertisers away, saying those worried about the content should “go fuck yourself.” Additionally, Musk has alleged that brands are engaging in “blackmail” and has initiated legal action against some advertisers and an industry association, accusing them of participating in an “illegal boycott” of X.

Kantar’s report reveals a concerning statistic: only 4 percent of marketers consider X a safe environment for their brands. This trust deficit signifies a broader challenge for the platform as it attempts to restore its reputation among advertisers.

As for X’s response to these troubling trends, the company has not provided immediate comments. However, they have communicated with the Financial Times, asserting that X now boasts enhanced capabilities for brand safety, performance, and analytics than ever before, all while experiencing record high user engagement.

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