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Walmart’s decision to quit Twitter advertising marks yet another setback for the old Twitter platform, which has been losing advertisers steadily. This controversial chain of events can be traced back to Elon Musk’s controversial speeches, which have caused several notable brands to abandon the network. The most recent casualty is Walmart, which has announced the suspension of its advertising on the platform, citing unsatisfactory performance.
Walmart joins a growing list of brands that have disappeared from what was once known as Twitter. The retail giant revealed that the decision to halt advertising on the platform, which occurred during the holiday shopping season, is not a result of a change in their advertising policies. Rather, it stems from the disappointing outcome of their ads on this particular platform. The company has progressively cut down its advertising spending since October, with the last ads being circulated around Thanksgiving Day.
However, the decline in advertisers on Twitter is not solely tied to Walmart’s withdrawal. Elon Musk, the controversial figure known for his provocative statements, has come under fire for alleged anti-Semitic remarks. IBM, for instance, decided to withdraw its advertising from what is now referred to as X due to Musk’s actions. Furthermore, the ongoing Israel-Hamas conflict saw tweets inciting hatred being circulated on the platform, adding to the controversy.
Walmart’s decision to cut advertising costs is driven by a desire to align spending with performance. A spokesperson for the company emphasized that this move does not necessarily rule out future ads on the platform; it simply reflects the current unsatisfactory outcomes. Joe Benarroch, X’s chief of commercial operations, underscored that Walmart has remained engaged with its community of over one million people on X, even without advertising announcements since October.
Walmart is not alone in its disassociation from the Twitter platform. Other prominent companies, such as Disney, Apple, and various entertainment companies, suspended their advertising on X in November. Musk’s description of an anti-Semitic remark as “the real truth” and his criticism of the Anti-Defamation League prompted these businesses to distance themselves from the platform. Moreover, Media Matters reported that X had placed ads for certain companies adjacent to posts supporting Nazis, leading IBM to temporarily halt its advertising spending. X responded by retaining Media Matters to investigate and address the issue.
During the recent DealBook Summit in New York, Musk did not shy away from using expletives to publicly criticize X’s advertisers who had threatened him with negative publicity. He declared, “If anyone tries to blackmail me with publicity, fuck off.” Musk expressed concerns that the advertising boycott could potentially “kill the company.”
Musk’s acquisition of what was then known as Twitter last year has precipitated challenges for the social media platform in retaining advertisers. Concerns have grown over his handling of content management and moderation. Advertisers are becoming increasingly wary of their association with a platform that has faced continuous controversy under Musk’s ownership.
In conclusion, Walmart’s departure from Twitter advertising signifies yet another blow to the old Twitter platform. Musk’s contentious statements and the platform’s management issues have led to a growing exodus of advertisers. As the future of the platform remains uncertain, it is left to be seen how Twitter, now known as X, will navigate these challenges and regain the trust of advertisers.
