Walmart announced Friday that it would scale back advertising on social media company X, formerly known as Twitter, because “we have found that other platforms are better suited to reach our customers.”
Walmart’s decision had been under consideration for some time, according to people familiar with the move. But it happens when X is facing difficulties. Advertiser outflow after billionaire owner Elon Musk endorsed anti-Semitic posts on the platform.
According to MarketingDive, the retailer spends about $2.7 billion on advertising each year. Joe Benarroch, head of operations at Company X, said in an email to CBS MoneyWatch that Walmart still has a large presence in Company X, and the company stopped advertising there in October. “Therefore, this is not a recent suspension,” he added.
“Walmart has an amazing community of over 1 million people on X, 500 million people on More than % are doing most or all of the things they do: They shop online,” Benarroch said.
Musk struck a provocative pose earlier this week at the New York Times’ Dealbook Summit. cursed the advertisers They distanced themselves from X and said, “Give yourself away.” He also complained that companies were trying to “blackmail me with advertising.” reduce spending And he warned that the loss of a major advertiser could “kill” X.
“And the whole world is going to know that those advertisers put the company out of business,” Musk added.
Since Mr. Musk, dozens of advertisers have championed X, including companies like Apple, Coca-Cola and Disney. I tweeted that I posted it. The platform, which claimed Jews incited hatred against white people and reflected anti-Semitic stereotypes, was “actual truth.”
Advertisers generally avoid placing their brand or marketing messages next to controversial content for fear that inflammatory content will damage their image with consumers.
According to a report in the New York Times, Company X could lose up to $75 million in revenue due to the loss of a major advertiser.
Musk said Wednesday that his support for anti-Semitic posts was “one of the stupidest things” he had ever posted on X.
“I’m very sorry,” he said, adding: “In hindsight, I shouldn’t have responded to that post.”