More than 25% of global advertisers are scaling back their spending on X, the social media platform formerly known as Twitter, as concerns about content safety and trust grow. New research from Kantar highlights a significant drop in advertiser confidence in X since Elon Musk’s acquisition of the platform.
Eroding Trust and Innovation Concerns
According to Kantar, marketers’ trust in X has sharply declined over the past year. Concerns about brand safety and negative perceptions of the platform’s innovation have driven this decline. Since Musk purchased X for $44 billion in October 2022, advertising revenue has plummeted, reflecting growing dissatisfaction among advertisers.
Musk, who envisioned X as a champion of free speech, has faced backlash for his erratic behavior and controversial statements. His dismissive attitude towards brands concerned about hate speech—telling them to “go f*** yourself”—has exacerbated the issue. Additionally, Musk has accused advertisers of “blackmail” and is involved in legal battles, accusing global firms and industry groups of an “illegal boycott” against X. Currently, only 4% of marketers see X as a safe platform for advertising, a sharp contrast to Google, which is trusted by 39% of marketers.
Significant Ad Spending Pullback
Kantar’s **Media Reactions 2024** report reveals a dramatic shift in ad spending. The report, based on feedback from around 18,000 consumers and 1,000 senior marketers across 27 markets, shows that X is experiencing the most substantial reduction in ad budgets among major platforms. A net 26% of marketers plan to cut their spending on X in 2025, marking the largest recorded decrease among global ad platforms.
Trust in X has fallen from 22% in 2022 to just 12% in 2024 under Musk’s leadership. The platform also lags in innovation, scoring outside the top ten globally. In contrast, TikTok is recognized as the most innovative advertising platform for the fifth year running, and YouTube remains the most trusted by marketers.
Gonca Bubani, Kantar’s Global Thought Leadership Director – Media, commented, “Advertisers have been withdrawing their budgets from X for years, and the pace of this trend has accelerated sharply over the past year. A turnaround seems unlikely given the current climate.”
Shift to Other Advertising Platforms
As X struggles, other platforms are thriving. Kantar’s research highlights YouTube as the top choice for advertisers, while Amazon and TikTok are tied for the top spot among consumers. Amazon’s ads are valued for their relevance and utility, while TikTok’s are seen as engaging and entertaining.
Despite their strong consumer ratings, Amazon and TikTok are not among the top five ad platforms for marketers. However, Netflix has emerged as a significant player, securing a top-five position among both consumers and marketers, thanks in part to its high ranking for brand safety.
Kantar’s analysis also points to a growing consumer preference for point-of-sale (PoS) ads, which have surpassed sponsored events in popularity. PoS ads are appreciated for their relevance and non-intrusiveness. Other favored channels include cinema ads, newspapers, sponsored events, and out-of-home advertising.
Financial Struggles for X
The decline in advertiser confidence has hit X’s revenue hard. Data from eMarketer shows that X’s global revenues peaked at $4.46 billion in 2021, with the UK contributing $366 million. However, by 2022, revenues had dropped to $4.14 billion, and they are projected to fall to $1.9 billion by the end of 2023, with the UK’s share expected to decrease to $160 million.
Legal and Regulatory Challenges
X is also facing legal and regulatory hurdles. In Brazil, one of its largest markets, the Supreme Court has upheld a ban on the platform for failing to remove disinformation and refusing to name a local legal representative. This adds to Musk’s mounting challenges, which include controversies over antisemitism, political unrest, and misinformation.
