Elon Musk’s X is facing a significant advertising exodus. A new survey by Kantar reveals that 26% of marketers plan to cut their ad budgets on the platform in 2025, marking the largest pullback from any major global advertising platform. This decline follows a trend of major brands withdrawing their advertising from X since Musk acquired the platform in 2022.
The primary reason cited by advertisers is Musk’s decision to relax content moderation policies, leading to a decline in advertiser trust. Only 4% of marketers consider ads on X to be “brand safe” compared to 39% who feel that way about Google.
In an attempt to address these concerns, Musk has tried to reassure advertisers, but the platform’s future remains uncertain. Musk’s efforts to attract budget-conscious advertisers with lower ad costs and his legal battles with various governments have not been enough to stem the tide of advertiser departures.
Despite the challenges, Musk remains optimistic about X’s potential and continues to promote the platform as a bastion of free speech. However, the platform’s ability to regain the confidence of advertisers and overcome the challenges it faces remains to be seen.
This situation highlights the delicate balance between free speech and brand safety, and the impact of content moderation policies on the advertising landscape.
