Elon Musk’s X social media platform has warned major advertisers to increase their spending or face legal trouble. The move comes after years of boycotts and advertising restrictions, which have now eased following a powerful relationship with the US President.
X CEO Linda Yaccarino recently met with executives from top ad agencies like Interpublic Group, urging them to boost spending on X. This is part of a broader effort by Musk’s team to secure more revenue for X ahead of its $20 billion merger with Omnicom Group.
Interpublic Group has signed a new annual deal with X, despite earlier claims that they would only spend 10% of their total budget on the platform. The company maintains that decision-making authority rests with individual clients.
X’s move also takes aim at ad trade groups and platforms that have previously restricted spending from social media outlets. The World Federation of Advertisers (WFA) was accused of coordinating an illegal boycott against X, and Musk’s team has filed antitrust lawsuits against several major brands.
Musk’s X has strengthened its ties with key stakeholders in the industry, including WPP and Publicis Groupe, which are reportedly close to signing deals. The platform’s efforts aim to rebuild its reputation and secure more advertising revenue ahead of the Omnicom merger.
Source: https://www.channelnews.com.au/x-warns-advertising-giants-to-spend-more-or-face-legal-trouble