In a cautious pivot, some of the world's largest advertisers, such as Comcast, IBM, and Disney, are trickling back to Elon Musk’s social media platform X.

Following a significant downturn in engagement last year due to safety concerns, top brands are now resuming ads on X, owned by prominent Donald Trump ally Musk, though spending remains starkly lower than previous levels, as Breitbart reports.

Last November, a controversy involving antisemitic content and hate speech displayed alongside their ads prompted companies like Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment to halt their advertising on X. This drastic action marked the beginning of a strained relationship between the platform's leadership and its key advertisers.

In response, Elon Musk vehemently criticized the boycotting companies, culminating in a contentious summit where he told advertisers bluntly, “Go fuck yourself… Go. Fuck. Yourself. Is that clear?” Musk accused the companies of attempting to "blackmail" X.

This year, spending by these companies from January to September totaled just under $3.3 million, a stark decrease from the $170 million recorded during the same period in 2023.

This reflects a 98% reduction and underscores the ongoing caution among advertisers regarding brand safety on the platform.

Significant Reduction in Ad Spend Reflects Ongoing Brand Safety Concerns

Among the returning advertisers, Comcast was the highest spender, allocating less than $1.5 million for the year, followed by Warner Bros. Discovery at $1.1 million.

Disney spent under $550,000, while Lionsgate and IBM’s expenditures were significantly lower, with Lionsgate spending less than $230,000 and IBM under $2,000.

X's lawsuit against Media Matters, accusing them of a smear campaign against Musk and the platform, has further complicated the landscape. This lawsuit is part of a broader struggle to regain the trust of advertisers concerned about the association of their brands with controversial content.

As of the third quarter of 2024, X reported ad revenues of $1.8 billion, which is a 29% decrease compared to the previous year, indicating continued challenges in monetizing its user base effectively.

Emerging Companies Increase Ad Spending Amidst Big Brand Cautiousness

Newer brands such as Karma Shopping, Canles Shoes, and Kueez Entertainment are bucking the trend, however, increasing their spending on X to a collective total of $68 million in 2024.

This is in stark contrast to the conservative approach taken by more established companies.

Despite these new entries, only 4% of marketers trust X for brand safety, a critical factor deterring larger brands from returning to previous spending levels. A recent global survey by Kantar revealed that marketers’ confidence in the platform remains low.

Looking ahead to 2025, 26 percent of marketers have indicated plans to cut their spending on X, suggesting that the platform’s challenges are far from over.

Analysts Suggest Strategic Ad Spending on X Could Benefit Brands Indirectly

Max Willens, a senior analyst at Emarketer, commented on the situation, suggesting that for some brands, “sending at least a trickle of ad spending toward X may be seen as good for business, albeit in an indirect way.”

This reflects a nuanced strategy where even limited engagement can be beneficial.

Apple, another major player in the digital advertising space, has notably not resumed advertising on X following last year's pause, highlighting the varied approaches among different companies.

The cautious re-engagement of these major brands with X highlights the delicate balance companies must strike between reaching a vast audience and protecting their reputation in an increasingly complex digital landscape.