X, the social network formerly known as Twitter, is expected to see a significant drop in ad revenue this quarter, with over 100 brands and other advertisers pausing or considering pausing their ad campaigns on the platform, according to a report by The New York Times. This comes after Elon Musk’s controversial tweet, which was followed by Media Matters’ report showing ads next to antisemitic content on the website. The company has filed a lawsuit against Media Matters, accusing it of deliberately creating an environment to display ads next to “extreme, fringe content.”
Brands such as IBM, Apple, Disney, Lionsgate, Ubisoft, Airbnb, Netflix, Microsoft’s subsidiaries, Uber, and Coca-Cola have all either paused or pulled their advertising campaigns from X. The company could potentially lose up to $75 million in ad revenue as a result. However, X has disputed these figures, stating that the revenue at risk is only around $11 million and that the exact amount keeps fluctuating as some advertisers return or increase their ad spending.