Once again, advertisers are backing away from X

Some brands are walking away from X after a Media Matters for America report found ads from major brands appearing “next to content that touts Adolf Hitler and his Nazi Party” on the platform and after owner Elon Musk endorsed an antisemitic conspiracy theory earlier this week.

IBM, which the New York Times reported planned to spend around $1 million on the platform in the last three months of 2023, suspended all advertising on the platform, the company confirmed to Marketing Brew.

“IBM has zero tolerance for hate speech and discrimination and we have immediately suspended all advertising on X while we investigate this entirely unacceptable situation,” IBM spokesperson Adam Pratt said in an email.

Following IBM’s decision, brands like Apple, Disney, Paramount, Warner Bros. Discovery, Lionsgate, and Comcast suspended advertising on the platform as well, according to news reports. Other organizations have also opted out of the platform, at least for now: the European Commission recommended a temporary suspension of advertising on X “to avoid risks of reputational damage,” according to Politico.

IBM, Apple, and Comcast-owned Xfinity were among the brands that appeared next to hateful content on X, according to the Media Matters report. Other brands, including Bravo (which is owned by Comcast’s NBCUniversal) and Oracle did not return our requests for comment; neither did X.

Digging a deeper hole: Earlier this week, in response to a post on X that referenced an antisemitic conspiracy theory, Musk wrote “You have said the actual truth.” Musk’s post prompted X Out Hate, a group of more than 160 Jewish leaders, to release a statement calling on brands like Apple and Amazon to stop advertising on the platform.

Musk has also faced criticism from the Anti-Defamation League over hate speech on X; Musk responded by threatening to sue the nonprofit in September. However, the group resumed advertising on X last month.

The ADL did not respond to a request for comment regarding whether it had paused ads again in light of this week’s developments.

Exit: As some brands reconsider spending on X, Musk and CEO Linda Yaccarino, who claimed in August that advertisers are “protected” from appearing next to brand unsafe content, are rolling out other ways to try to make money, including introducing new subscription tiers and partnering with Google to sell programmatic ads.

But the controversies, as well as data suggesting the platform is losing users, haven’t been good for its valuation, which the company said was $19 billion in October, a steep drop from the $44 billion Musk paid for it in October 2022.

Update 11/20/2023: This piece has been updated to include additional advertisers and organizations that have stated their intentions to stop advertising on X.