Walmart’s decision to quit advertising on Twitter has added to the growing list of companies pulling their ads from the platform. This comes at a time when the old Twitter, now known as X, is struggling to retain advertisers during moments of crisis. The controversial match between Musk and Twitter began with Musk’s controversial speeches, and now Walmart is the latest company to leave the network.
Walmart is just one of several brands that have disappeared from the X platform, formerly known as Twitter. The retail giant has announced that it will be suspending its advertising due to the unsatisfactory performance of its ads on the platform. Interestingly, Walmart made this decision during the holiday shopping season, but they have clarified that it is not a change in their advertising policies.
In recent months, Walmart has significantly reduced its advertising spending, with the last ads being circulated around Thanksgiving Day. This reduction in spending has been driven by the company’s desire to align its advertising costs with performance. Walmart’s goal is to ensure that future ads on the platform are not linked to the decision to suspend advertising.
According to Joe Benarroch, X’s chief of commercial operations, Walmart has not made any platform announcements since October. However, he highlighted that the company has been able to connect with its community of over one million people on X organically. This suggests that Walmart may still be open to future advertising on the platform.
Walmart’s decision to quit advertising on X follows a series of events involving Elon Musk and his controversial statements. Musk has been accused of anti-Semitism, and his comments have led to other companies withdrawing their advertising from X. For example, IBM paused its advertising spending on X after Musk’s remarks and Twitter has faced criticism for failing to address tweets inciting hatred.
In fact, Media Matters recently reported that X placed ads for some companies alongside posts that supported Nazis. This prompted IBM to pause its advertising spending on the platform. Media Matters conducted their own investigation into the matter, which resulted in their report being retained by X.
Musk’s controversial statements have had a significant impact on X’s advertising revenue. Alongside Walmart, other major companies such as Disney and Apple have suspended their advertising on X. These companies made the decision to pull their ads after Musk described an anti-Semitic remark as “the real truth” and criticized the Anti-Defamation League.
Musk’s approach to content management and moderation has raised concerns among advertisers. Since Musk acquired Twitter last year, the platform has struggled to retain advertisers. Advertisers are becoming increasingly wary of being associated with Musk’s controversial statements and fear that it may harm their brand image.
At the recent DealBook Summit in New York, Musk used foul language during an interview to publicly criticize advertisers who have withdrawn their ads from X. He defiantly proclaimed, “If anyone tries to blackmail me with publicity, fuck off.” Musk also expressed his concerns that the advertising boycott could potentially kill the company.
It remains to be seen how X will navigate the challenges it faces in retaining advertisers while dealing with the fallout from Musk’s controversial statements. The platform will likely need to address concerns around content management and moderation to regain the trust of advertisers. For now, companies like Walmart are opting to suspend their advertising on X, prioritizing their brand reputation and performance over being associated with the platform’s current controversies.