In December, Platform X, formerly known as Twitter, recorded more than 10 million new user registrations. This was announced by CEO Linda Yaccarino. This impressive influx of new users comes with a potential loss in advertising revenue, which The New York Times estimates could reach $75 million by year’s end. The situation is exacerbated by major brands’ decision to stop marketing campaigns on the platform.
The platform, which was purchased by Elon Musk for $44 billion and is now valued at $19 billion, traditionally does not disclose details about the number of its users. However, Yaccarino broke this rule by announcing significant growth in its user base in December this year. Musk, in turn, announced 540 million monthly users of the social network in July. representative of
The situation is complicated by the decisions of several large companies such as Apple, Disney, Warner Bros. Discovery, Comcast, Lions Gate Entertainment, Paramount Global and IBM will temporarily suspend advertising campaigns on Platform X. The decision follows a series of controversial statements from Musk.
The report from watchdog group Media Matters also found that major brands are running ads on Platform X alongside posts with questionable content. At the end of November, X filed a lawsuit against Media Matters, accusing them of defamation. These circumstances show increasing tensions between the platform and advertisers and worsen their economic situation.