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Business News/ Companies / News/  Walmart joins ranks of advertisers pulling away from Elon Musk's X
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Walmart joins ranks of advertisers pulling away from Elon Musk's X

While Walmart's move to pull off ads on X was made public on December 1, Joe Benarroch, the head of operations at X said the company had not placed ads on the platform since October

FILE PHOTO: Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X, formerly known as Twitter (REUTERS/Gonzalo Fuentes/File Photo)Premium
FILE PHOTO: Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X, formerly known as Twitter (REUTERS/Gonzalo Fuentes/File Photo)

Walmart has in a statement announced its decision to halt advertising on social media platform X (formerly Twitter), aligning itself with a growing list of brands distancing from the Elon Musk-owned site, as per a Reuters report.

A spokesperson for Walmart clarified, "We aren't advertising on X as we've found other platforms to better reach our customers." X did not respond to queries on the issue, the report said.

Notably, while Walmart's move to pull off ads on X was made public on December 1, Joe Benarroch, the head of operations at X said the company had not placed ads on the platform since October, instead focusing on organic engagement within its community of over one million members on X.

Also Read: How Elon Musk became an 'anti-semite'?

“Walmart has a wonderful community of more than a million people on X, and with half a billion people on X, every year the platform experiences 15 billion impressions about the holidays alone with more than 50% of X users doing most or all of their shopping online," Benarroch said in a statement.

Signs of more troubles ahead

Ad industry experts warn of impending turmoil for social media company X as more advertisers consider deserting the platform, following a cascade of events triggered by its billionaire owner Elon Musk's recent actions, as per a Reuters report.

Walt Disney and Warner Bros. Discovery took decisive steps in November by halting advertising efforts on X. The move came in response to Musk endorsing an antisemitic post. The backlash was followed by Musk apologising.

However, when speaking about the incident at the New York Times DealBook event, Musk first expressed regret for his post, before launching into a profanity-laden diatribe against fleeing advertisers. He accused the brands of "blackmail," with apparent criticism directed at Walt Disney CEO Bob Iger, who earlier commented that partnering with X had not been a positive association for their brand.

A senior executive from a major ad-buying agency told Reuters that X's ad sales representatives seemed disconcerted post-Musk's outburst and offered limited engagement in discussions.

Major corporations such as Apple, IBM, Sony, Disney, Comcast (including NBC Universal), and Paramount, who have pulled out, collectively constituted 7 percent of the total US ad spend on X until October this year, as indicated by Sensor Tower data. Now, the platform faces the alarming reality of losing not just corporate advertisers but also potential revenue from political candidates, a stream that re-emerged after X lifted its ban on political ads.

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Published: 02 Dec 2023, 06:59 AM IST
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