Walmart’s departure from Twitter advertising marks yet another loss for the platform, highlighting the challenges it faces during times of crisis. The contentious nature of Elon Musk’s speeches ignited the controversy, ultimately leading to the retail giant’s decision to discontinue its advertising on the network.
Walmart joins a growing list of brands that have disappeared from the platform, with the company announcing its suspension of advertising due to the underwhelming performance of ads on the platform. This move happened during the holiday shopping season, making it a significant blow for Twitter.
The company has been steadily reducing its advertising spending since October, with the last ads being seen around Thanksgiving Day. This downward trend indicates that Walmart has been dissatisfied with the results it has been seeing on Twitter and sees cutting advertising costs as a way to align with its performance goals.
Elon Musk’s controversial remarks have had a profound impact on Twitter’s advertising business. Alongside Walmart, other notable companies like Disney and Apple, as well as various entertainment companies, suspended their advertising on Twitter in November. Musk’s description of an anti-Semitic remark as “the real truth” and his criticism of the Anti-Defamation League led to these companies taking a stand against Twitter.
The repercussions of Musk’s actions extended beyond just the loss of advertising revenue. Anti-Semitic content continued to persist on the platform, leading IBM to halt its advertising spending on Twitter. Media Matters reported that Twitter placed ads for some companies alongside posts supporting Nazis, further exacerbating the situation. Eventually, Twitter addressed this issue, but only after Media Matters called attention to it.
During the recent DealBook Summit in New York, Musk openly criticized Twitter’s advertisers, using profanity and stating that he would not succumb to potential blackmail attempts. He expressed concern that the advertising boycott could potentially “kill the company.” Musk’s involvement in the platform’s content management and moderation practices has raised concerns among advertisers, making them more hesitant to continue their partnerships with Twitter.
Ever since Musk acquired Twitter, formerly known as X, last year, the social media platform has faced numerous challenges in retaining advertisers. Musk’s unconventional approach to managing content and moderating discussions has left many advertisers uncertain about the platform’s future.
Despite Walmart’s departure and the ongoing challenges, Twitter remains optimistic about its ability to bounce back. Joe Benarroch, X’s chief of commercial operations, noted that Walmart has not made any formal announcements about severing ties with the platform since October. He highlighted the fact that the company has significantly connected with its community of over one million people on Twitter, creating hope for potential future collaborations.
In conclusion, Walmart’s exit from Twitter advertising due to unsatisfactory performance signifies yet another setback for the platform. Elon Musk’s controversial statements and the platform’s struggle to manage content have posed ongoing challenges. However, Twitter remains hopeful and determined to regain trust and rebuild its advertising partnerships. Time will tell if they can successfully navigate these turbulent times and maintain their position as a leading social media platform.