Walmart’s decision to quit advertising on Twitter has further underscored the platform’s struggle to retain advertisers during times of crisis. The contentious match was ignited by Elon Musk’s controversial speeches, and Walmart is now the latest company to distance itself from the social media giant.
Walmart joins a growing list of brands that have already disappeared from the platform, formerly known as Twitter, as they announced the suspension of their advertising due to Elon Musk’s company. The retail behemoth clarified that this move during the holiday shopping season was not a result of any change in their advertising policies, but rather the lackluster performance of ads on the platform.
In fact, Walmart has significantly reduced its advertising spending since October, with the last ads being circulated around Thanksgiving Day. The decision came as other major companies, including Disney, Apple, and various entertainment firms, also halted their advertising on the platform following Musk’s description of an anti-Semitic remark as “the real truth” and his criticism of the Anti-Defamation League.
The fallout from Musk’s controversial statements has had far-reaching consequences. The conflict between Israel and Hamas intensified as tweets inciting hatred continued to circulate on the platform. This prompted Elon Musk to meet with the president of Israel after facing accusations of anti-Semitism. The ripple effect extended to IBM, which withdrew its advertising on Twitter due to the presence of anti-Semitic content alongside its ads.
Media Matters, a nonprofit organization, subsequently reported that Twitter had placed ads for certain companies next to posts that supported the Nazi ideology. This shocking revelation further fueled advertisers’ concerns, causing them to reassess their relationship with the social media platform. Joe Benarroch, X’s chief of commercial operations, emphasized that Walmart’s decision was based on aligning advertising costs with performance and did not necessarily preclude future ads on the platform.
Elon Musk’s acquisition of Twitter last year has proven to be a double-edged sword for the platform. While it has brought significant attention and controversy, it has also raised concerns about content management and moderation. This apprehension is leading advertisers to reevaluate their association with the platform, considering its potential impact on brand reputation and consumer sentiment.
During the recent DealBook Summit in New York, Musk did little to assuage advertisers’ concerns. He used foul language in an interview and publicly criticized those advertisers who voiced their displeasure with the platform. “If anyone tries to blackmail me with publicity, fuck off,” he declared. Musk even went as far as warning that the advertising boycott could ultimately “kill the company.”
As advertisers increasingly prioritize brand safety and ethical considerations when choosing platforms for their campaigns, Twitter’s struggles to retain advertisers only seem to be intensifying. The departure of Walmart and other prominent brands serves as a stark reminder that advertisers are closely scrutinizing platforms and expecting proactive measures to address content-related controversies. The fate of X/Twitter hangs in the balance, as the company grapples with the repercussions of Musk’s unfiltered approach to content management and moderation.
