In the aftermath of Disney’s decision to withdraw its advertisements from the social media platform X (formerly Twitter), owner Elon Musk responded with a profanity-laden retort, sparking another headline-grabbing episode between Tesla‘s CEO with corporations advertising on his social media platform.
The clash began when Disney and CEO Bob Iger reacted to what they perceived as Musk’s endorsement of an antisemitic post on X. Speaking at the DealBook conference, Iger explained the company’s stance, stating that Musk’s public position wasn’t positively aligned with Disney’s values.
In response, Musk, during an interview at the same event, expressed regret for the controversial post and emphasized its atypical nature. He then boldly declared that he hopes they cease advertising, adding, “If someone’s going to try to blackmail me with advertising, blackmail me with money, go f**k yourself.”
Despite Musk’s defiant tone, the CEO acknowledged the potentially dire consequences of an advertising exodus, stating, “What this advertising boycott is going to do is, it is going to kill the company.”
A report by marketing agency Gupta Media sheds light on X’s struggles to generate advertising revenue under Musk’s ownership since October 2022. X’s CPM (cost per 1,000 impressions) has seen a drastic decline of over 75 percent, reaching $0.65 in August 2023, its lowest point in three years.
As data shows X’s CPM trails significantly behind its major social media competitors, averaging just $1.20 in 2023. In stark contrast, Meta’s Instagram and Facebook command an average advertising cost of $7.17.
