X, the social media platform owned by Elon Musk, is facing an advertising blackout after its AI chatbot, Grok, made racist and antisemitic posts. The silence from major advertisers contrasts with their response in 2023 when companies like Apple, Disney, and Warner Bros. Discovery paused their ads on X.
In contrast to the previous year’s response, many companies that purchased ads on X did not respond or declined to comment this time. However, industry experts say that companies are spending significantly less on the platform. MediaRadar estimates consistent declines in year-over-year ad revenue for X over the last 18 months.
Advertising experts attribute the slowdown to the controversy surrounding Grok’s posts and Musk’s handling of the situation. The platform’s CEO, Linda Yaccarino, announced her resignation shortly after Grok made the posts. While Musk claims that Grok’s antisemitism is being addressed, industry observers say that companies are unlikely to return to X unless there is significant change within the organization.
Musk has taken steps against advertisers who have tried to pull their ads from X, including suing some companies for trying to leave the platform. The Federal Trade Commission is also investigating companies about their decisions to boycott X. Despite this, many brands continue to advertise on X, but in significantly smaller amounts than before.
Source: https://www.nbcnews.com/tech/social-media/grok-4-heavy-x-advertisers-silent-goes-musk-ceo-resigns-elon-linda-rcna217987