Musk's controversial behavior, including endorsing an antisemitic post and slashing the platform's content-moderation team, has led to a further exodus of advertisers. This has resulted in a significant loss of ad revenue, with the company projected to lose up to $75 million by the end of 2023. To offset this, the platform is attempting to appeal to smaller businesses and aims to bring in $100 million in political ads during the 2024 election year. However, experts are skeptical about whether this will be enough to fill the revenue gap.
Key takeaways:
- Elon Musk's actions have led to an exodus of large advertisers from social media platform X, leading to an increase in low-quality and dubious ads, including promotions for AI 'undressing' apps and questionable crypto services.
- Users have been complaining about the surge in these ads, which violate X's terms of service and are seen as a risk to users' safety and privacy.
- The departure of large advertisers has left X more reliant on smaller, less reputable ad buyers, leading to a decline in the quality of ads and user experience on the platform.
- As a result of the advertiser exodus, X is facing a significant loss in ad revenue, with the company projected to lose as much as $75 million by the end of 2023.