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Walmart, one of the largest retail giants, has recently announced its decision to quit Twitter advertising, adding to the growing list of companies that have distanced themselves from the platform. This move comes in the midst of a crisis for Twitter, as it grapples with the fallout from Elon Musk’s controversial speeches.
It is worth noting that Walmart is not the only brand that has decided to disappear from the platform, previously known as Twitter. In fact, several other well-known brands have already made a similar announcement, attributing their decision to Elon Musk’s company. Walmart, in particular, stated that their decision to suspend advertising on the platform was not driven by a change in their advertising policies, but rather due to the unsatisfactory performance of their ads.
The retail giant significantly reduced its advertising spending since October, with the last ads being circulated around Thanksgiving Day. Along with Walmart, other major companies such as Disney, Apple, and various entertainment companies also suspended their advertising on the platform in November. This action was prompted by Musk’s description of an anti-Semitic remark as “the real truth” and his criticism of the Anti-Defamation League.
Elon Musk’s controversial statements have come at a high cost for Twitter. The platform has been heavily criticized for allowing ads to be placed next to posts that supported Nazis. As a result, IBM decided to pause its advertising spending on Twitter. This incident prompted X (formerly Twitter) to respond by commissioning Media Matters to conduct an independent review of their ad placements.
In the wake of these events, Joe Benarroch, X’s chief of commercial operations, emphasized that Walmart has not made any public announcements on the platform since October. However, he also highlighted the company’s strong organic connection with its community of over one million followers on X.
Elon Musk’s approach to content management and moderation has become a growing concern for advertisers. Ever since Musk acquired what was then known as Twitter last year, the social media platform has experienced difficulties in retaining advertisers. Many are hesitant to be associated with a platform that allows controversial statements and promotes hatred.
The current crisis has further intensified with Musk’s recent comments at the DealBook Summit in New York. During an interview, Musk used explicit language to publicly criticize the advertisers who have distanced themselves from X. He declared, “If anyone tries to blackmail me with publicity, f*** off.” Moreover, Musk expressed his concern that the advertising boycott could potentially “kill the company.”
Considering the challenges faced by Twitter, it is crucial for the platform to reassess its content management and moderation practices. Addressing advertisers’ concerns and ensuring a safe and appropriate environment is vital to regain their trust and prevent further loss of revenue.
In conclusion, Walmart’s decision to quit Twitter advertising is a reflection of the growing concerns surrounding Elon Musk’s controversial speeches and Twitter’s handling of content moderation. The platform’s ability to retain advertisers is crucial for its sustainability and success in the long run.
