Since taking over Twitter, Elon Musk envisioned a social media platform where advertisers, prominent figures of all backgrounds, and ordinary users could flourish in a “town square” that isn’t a “free-for-all hellscape.” However, it appears that not everyone is on the same page as Musk, because Twitter is seemingly shedding advertisers left, right, and centre.
According to a report compiled by Media Matters for America, 50 of Twitter’s top 100 advertisers have apparently ceased or significantly reduced advertising on the social media website, taking with them a substantial chunk of Twitter’s advertising revenue. Chevrolet, Chipotle Mexican Grill, Inc., Ford, Jeep, Kyndryl, Merck & Co. and Novartis AG have all said they are halting Twitter ads going forward, while others have stopped showing ads on the site for a “significant period of time following direct outreach, controversies, and warnings from media buyers.”
The list of major advertisers, which spent a combined almost $2 billion on Twitter advertising since 2020 and more than $750 million since 2022 alone, are distancing themselves from the new owner’s “rash of brand unsafe actions— including amplifying conspiracy theories, unilaterally reinstating banned accounts such as that of former president Donald Trump, courting and engaging with far-right accounts, and instituting a haphazard verification scheme that allowed extremists and scammers to purchase a blue check.”
Eli Lilly and Co., which manufactures the diabetic drug insulin, ending its Twitter advertising campaign after a fake account with a verified blue checkmark impersonating the drug maker tweeted that insulin will be free. Despite Eli Lilly requesting Twitter remove the post, the tweet remained online for hours, sending the pharmaceutical company’s stock nosediving.
Even famed fiction author Stephen King took issue with Musk’s haphazard verification system, warning to leave the platform if such expensive anarchy ensues. Although he didn’t end up deleting his account, King later quipped in a tweet, “pretty soon the only advertiser left on Twitter will be My Pillow,” referring to the company’s owner, Mike Lindell, an alleged pro-Trump conspiracy theorist.
Information for this briefing was found via Media Matters for America and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.