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Musk Won! Major brands are planning to resume advertising on X (formerly Twitter) to align with the incoming Trump administration.

Remember this? When you stand up for what’s right, they always come back. “Disney, IBM, Comcast, WB etc.. will be resuming advertising on X after boycott

  • Musk’s Political Influence: Elon Musk’s support for Donald Trump has enhanced his political influence, prompting companies to seek favor with the anticipated administration.
  • Revenue Decline Post-Acquisition: Following Musk’s $44 billion acquisition, X’s revenues dropped significantly, with valuations falling below $10 billion.
  • Concerns Over Content Moderation: Brands like Disney, IBM, and Apple previously left the platform due to concerns over Musk’s content moderation policies.
  • Political Leverage in Advertising: Marketers may reallocate spending to X as a form of political leverage, especially those seeking government contracts.
  • Potential Official Channel: X could become an official communication channel for the White House, given Musk’s role in the new Department of Government Efficiency.

  • Skepticism Among Advertisers: Some advertising executives remain cautious, questioning the risks and value of returning to X.
  • Musk’s Optimism: Musk anticipates a business resurgence for X, citing increased user engagement and political discourse aligned with Trump’s victory.
  • Challenges Ahead: Despite optimism, X faces challenges, including debt and market skepticism, in stabilizing its business.
  • Impact on Debt Holders: Banks holding X’s debt are uncertain about the election’s impact on their holdings, given the platform’s financial instability.
  • New Financial Leadership: X has appointed Mahmoud Reza Banki, previously CFO of Tubi, as its new Chief Financial Officer.
  • Legal Actions Against Advertisers: X filed a lawsuit against the Global Alliance for Responsible Media and certain advertisers, alleging collusion in boycotting the platform.

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Disney, IBM, Warner Bros., and others are cautiously advertising on X (formerly Twitter) again after a year-long boycott over content moderation issues. However, their ad spending has plummeted by 98%, signaling ongoing hesitation.

Major companies resume advertising on X, after previously joining a boycott of the site. Comcast, Disney, Warner Bros, Discovery and Lionsgate have resumed advertising on the site this year, after previously joining a boycott in 2023. Industry experts believe Elon Musk’s close ties with Trump, will likely spur advertisers to return to the platform. Source: Adweek, Financial Times

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