Is Elon Musk filling the pinch?
This is the crucial question following Elon Musk’s response to advertisers pulling advertising on his platform X, formally known as Twitter.
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Speaking on several issues which included X advertising, Musk, at the 2023 DealBook Summit in New York, told advertisers boycotting his platform to think again if they wished to blackmail his platform.
“…Blackmailing me with money, go f*** yourself,” Musk said to advertisers who he said attempted to strong-hold him into a certain direction.
The platform appears to be hemorrhaging advertisers and Musk’s response appears to be a much-awaited response from advertisers such as Coca-Cola, Airbnb, Microsoft, and even Disney who have since pulled or paused advertising on X.
Musk’s platform X has previously, and to date remained an advertising delivery mechanism.
Reports indicate that Musk’s endorsement of an antisemitic conspiracy theory may be the plug that most advertisers do not want to support.
Millions in advertising revenue losses are rumored to be what Linda Yaccrino inherited as she started in June as chief executive of X.
Paused marketing campaigns could mean massive losses for X, as more and more companies pull marketing on the platform.
Advertising such as political campaigns, fast food chains, and tech giants, have halted more than $1 million of advertising and it seems that number is growing.
It was over a year ago that Musk took over X, in a $44 billion deal, and it seems the company is in a potential crisis as cash flow remains negative.
The latest controversy against Musk or X rather dates back to a tweet that Musk endorsed that accused Jewish communities of pushing “…hatred… “, where Musk responded with: “You have said the actual truth.”
Should more of the boycotting continue, this will most likely cripple the company.
While Musk’s comment while on stage with Andrew Ross Sorkin at the New York Times Dealbook Summit, may have amused some of his followers, his detractors smell blood.
The notorious tech genius has openly portrayed an image of nonchalance but banked on his products speaking for themselves.
Tesla is a good example, which has shown growth in sales and has done more for the economy than any other brand according to Musk.
X is a different platform. The platform has undergone several changes in the past year, which may threaten consumer loyalty.
Couple that with the fact that Musk has told advertisers to stick it where the sun doesn’t shine, and you’re most likely going to have to precipitate trouble for the once-bluebirded app.
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