Walmart Ceases Advertising on Elon Musk’s X Platform, Confirms Company Decision

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Written By Blue & Gold NLR Team

 

 

 

 

On Friday, Walmart announced a reduction in its advertising presence on X, the social media platform formerly known as Twitter. The decision was attributed to the retailer’s preference for other platforms to connect with its customer base.

This move had been underway for some time, as revealed by a source familiar with Walmart’s strategy. The decision coincides with a wave of advertisers distancing themselves from X due to Elon Musk, the billionaire owner, expressing support for an antisemitic post on the platform.

Walmart, which allocates approximately $2.7 billion annually to advertising, still maintains a significant presence on X, according to Joe Benarroch, X’s head of operations. In an email to CBS MoneyWatch, Benarroch highlighted Walmart’s substantial community on X, with over a million users, and emphasized the platform’s widespread impact during the holiday season.

Elon Musk, at the New York Times’ Dealbook Summit, remained defiant, criticizing advertisers who had severed ties with X and accusing them of attempting to “blackmail” him through advertising. Musk warned that the departure of major advertisers could potentially “kill” X, and he asserted that the responsibility for the platform’s demise would rest on those advertisers.

The exodus of advertisers, including prominent names like Apple, Coca Cola, and Disney, ensued after Musk supported a controversial post on X, perpetuating antisemitic stereotypes. Advertisers generally avoid associating their brands with contentious content to prevent damage to their public image. The potential loss of major advertisers could reportedly lead to a revenue decline of up to $75 million for X, according to a New York Times report.

In a reversal, Musk acknowledged on Wednesday that his endorsement of the antisemitic post was “one of the most foolish” statements he had ever made on X.

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