GARM Dissolves Following X’s Lawsuit
In a surprising turn of events, the World Federation of Advertisers (WFA) announced the dissolution of the Global Alliance for Responsible Media (GARM) just days after being sued by Elon Musk’s X. The lawsuit alleges that WFA and its major advertising members conspired to withhold billions of dollars in advertising revenue. X’s CEO, Linda Yaccarino, took to social media to celebrate GARM’s end, hailing it as a necessary step towards ecosystem-wide reform.
Limited Resources and Wrongdoing Claims
According to a letter sent by WFA to its members, GARM’s discontinuation was a direct result of X’s lawsuit. The initiative, aimed at helping advertisers avoid harmful websites, only had two full-time employees and limited resources. While GARM may be dissolving, WFA is determined to challenge X’s lawsuit, maintaining their innocence. The House Judiciary Committee, which X cited in its lawsuit, sees GARM’s closure as a victory for the First Amendment.
X’s Premature Celebration?
Despite X’s celebration, adtech watchdog Check My Ads argues that the company’s victory may ultimately backfire. Claire Atkin, co-founder of Check My Ads, believes that advertisers will now be less likely to advertise on X, as they won’t have GARM’s recommendations to rely on. Atkin points out that X had only recently celebrated its reinstatement into GARM, touting it as a sign of their commitment to brand safety. With GARM no longer in existence, X may find it difficult to attract advertisers who prioritize responsible advertising practices.
The Treacherous Relationship with X
Atkin further asserts that advertising on X is a risky proposition for advertisers. With GARM gone, there is no comparable initiative to recommend making deals with X. Atkin suggests that X doesn’t have as many advertisers to lose as one might think, based on public reporting. The dissolution of GARM may lead to a mass exodus of advertisers from X, as they seek alternative platforms that prioritize responsible advertising placement.
Looking Ahead
As the legal battle between X and WFA continues, the future of responsible advertising practices remains uncertain. The dissolution of GARM highlights the need for a more comprehensive and independent third-party initiative to guide advertisers in making ethical advertising decisions. Advertisers will likely be cautious in their dealings with X, as they navigate the ever-changing landscape of digital advertising. Ultimately, the outcome of X’s lawsuit and the subsequent impact on the advertising industry will shape the future of responsible advertising practices.
