# X’s Revenue Struggles Lead to Advertiser Exodus
In late 2023, Elon Musk’s platform, X, faced a significant loss of advertisers as it grappled with revenue generation challenges. The departure of these advertisers was primarily attributed to the presence of pro-Nazi content on the site, which led to concerns about brand safety and reputation. Musk’s response to the advertisers was controversial, with him telling them to “go fuck yourself” [source].
Adding to X’s woes, Musk revealed that the former Twitter’s revenue had already declined by 60 percent since his acquisition [source]. These setbacks painted a bleak picture for X’s future prospects.
# Marketers Planning to Reduce Ad Spend on X in 2025
The challenges for X are expected to continue in 2025, as a report from UK market research firm Kantar indicates that 26 percent of marketers are planning to reduce their ad spend on the platform next year [source]. This reduction in ad spend represents the largest recorded pullback from any major global advertising platform.
According to Kantar’s research, the level of trust in advertising on X was already historically low before Musk’s involvement. However, since the acquisition, this trust has further eroded [source]. Advertisers have been increasingly skeptical about their brand safety in X’s unpredictable environment.
# X’s Low Trust and Brand Safety Ratings
Kantar’s report highlights the significant decline in trust in X as an advertising platform. In 2022, trust in advertising on Twitter stood at 22 percent, but it has now plummeted to 12 percent in 2024 [source]. This decline can be attributed to the platform’s continuous changes and lack of predictability.
Furthermore, when it comes to brand safety, only 4 percent of advertisers believe that X provides a safe environment for their brands. In comparison, Google leads the pack with 39 percent of advertisers considering it the safest platform [source]. X also falls short in terms of trust and innovative advertising, scoring outside the global top ten. TikTok is seen as the most innovative platform, while YouTube ranks highest in terms of trust [source].
The graph included in Kantar’s report visually illustrates the stark contrast between X and other social media platforms in terms of trust and brand safety [source].
# Musk’s Controversial Actions and X’s Future
Elon Musk’s recent actions have further raised concerns about X’s future. He recently faced criticism for promoting a Tucker Carlson video on X, featuring a guest with sympathies for Hitler [source]. Musk later deleted the post, but this incident adds to the growing doubts about the platform’s ability to address concerns related to hate speech and controversial content.
Given the current trajectory, it is unlikely that X will change course under Musk’s leadership. The platform’s lack of transparency and inability to guarantee brand safety has pushed advertisers away. With the continuous decline in trust and the recent controversies, X’s revenue struggles and advertiser exodus may persist in the coming years.
In conclusion, X’s revenue challenges have resulted in a significant loss of advertisers, primarily due to concerns over brand safety and the presence of pro-Nazi content. Kantar’s research highlights the decline in trust in X and its low ratings for brand safety. Musk’s controversial actions have further fueled doubts about X’s future. As marketers plan to reduce ad spend on the platform, the road ahead looks challenging for X.