Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment have returned to advertising on X (formerly Twitter) after a year-long boycott, according to AdWeek. These companies, which previously distanced themselves from the platform over concerns about content moderation, are now cautiously resuming campaigns.
Substantial drop in advertising spend
Despite their return, the financial commitment from these brands has drastically reduced. The weekly American advertising trade publication said that according to MediaRadar, which offers advertising analysis for millions of brands across multiple media platforms, from January to September 2024, these companies spent a combined $3.3 million on X, marking a steep 98% drop compared to the $170 million spent during the same period in 2023,
Reasons behind the boycott
The boycott began in November 2023 when ads from these companies appeared next to antisemitic content and hate speech. The situation worsened after X owner Elon Musk allegedly endorsed an antisemitic conspiracy theory. This prompted a coalition of 163 Jewish leaders, activists, and academics to urge companies like Disney, Apple, and Amazon to halt their advertising on the platform.
New advertisers seize the opportunity
While traditional advertisers have scaled back, MediaRadar notes that challenger brands such as Karma Shopping, Canles, and Kueez have invested over $68 million in total on X this year. These smaller brands are reportedly taking advantage of reduced competition on the platform, signaling a shift toward a long-tail advertising model that may redefine X’s strategy.
Meghan Fraze, Chief Product Officer at MediaRadar, told AdWeek: “This suggests that X might move to a long-tail advertiser strategy. This would benefit new brands looking to connect with audiences without the intense competition.”
Companies’ stance on X’s leadership
The return of major advertisers has been credited to X CEO Linda Yaccarino, whose leadership has focused on rebuilding trust and partnerships. Elon Musk expressed gratitude on X, saying:
“Just want to say that we super appreciate major brands resuming advertising on our platform! Thanks @lindayaX and the whole X team for your hard work in restoring confidence in our platform.”
Silence from key advertisers
While IBM stated its approach to X remains unchanged, Comcast, Disney, Lionsgate, and Warner Bros. Discovery have yet to comment on their return, AdWeek stated.
Election result may shape ad strategy
As the 2024 US election ended, brands may need to recalibrate their cautious strategies on X, particularly given Elon Musk’s close ties to President-elect Donald Trump. The political climate could influence the platform’s ad landscape and how advertisers approach content moderation and messaging.
This development underscores the evolving dynamics of advertising on X, with traditional brands treading carefully while new players capitalize on a less crowded field.
