Walmart Drops Twitter Ads Amidst Controversy: The Latest Loss for X/Twitter Advertising
Walmart’s recent decision to quit Twitter advertising has further underscored the ongoing loss of advertisers on the platform. This controversial trend was initiated by Elon Musk’s speeches, and Walmart is the latest company to join the exodus.
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Walmart, one of the many brands that have disappeared from the platform, recently announced that it would be suspending its advertising on X (formerly Twitter). The retail giant emphasized that this move was not due to a change in its advertising policies, but rather because the ads were not delivering satisfactory results on the platform. Interestingly, this decision comes during the holiday shopping season, when advertising is typically at its peak.
Starting from October, Walmart has significantly reduced its advertising spending, with the last ads being circulated around Thanksgiving Day. The company’s decision to cut costs aligns with its goal of improving advertising performance. Walmart spokesperson told the Wall Street Journal that this suspension does not rule out future ads on the platform, as long as they achieve the desired results.
Elon Musk’s controversial statements have proven to be detrimental to X/Twitter, causing several major companies, including Walmart, Disney, and Apple, to suspend their advertising on the platform. Musk’s description of an anti-Semitic remark as “the real truth” and his criticism of the Anti-Defamation League triggered this advertising boycott. The impact of Musk’s statements was further compounded when Media Matters reported that X had placed ads next to posts supporting Nazis, leading IBM to pause its advertising spending as well. In response, X took action by addressing Media Matters’ concerns and investigating the matter.
During the recent DealBook Summit in New York, Musk expressed his dissatisfaction with the advertisers who had left X. In an interview, he used strong language to criticize those who attempted to blackmail him with adverse publicity. He highlighted the potential impact of this advertising boycott, stating that it could “kill the company.”
These challenges in retaining advertisers have arisen since Musk’s acquisition of what was then called Twitter last year. Advertisers are increasingly concerned about Musk’s approach to content management and moderation, leading them to question the platform’s suitability for their advertising needs.
Despite these setbacks, Benarroch, X’s chief of commercial operations, highlighted that Walmart has continued to engage with its community of over one million people on X organically. This demonstrates the value the company sees in maintaining a presence on the platform, even if it has currently suspended its advertising. Benarroch emphasized that the decision to withdraw from advertising is a strategic one, based on performance, and does not indicate a permanent departure from the platform.
In conclusion, Walmart’s departure from Twitter advertising is part of a larger trend of advertisers distancing themselves from the platform. Musk’s controversial statements and concerns about X’s content management and moderation have cast a shadow over its attractiveness to advertisers. However, despite these challenges, Walmart’s decision to suspend its advertising does not rule out a future return to the platform if performance improves. Only time will tell if X/Twitter can recover from this period of turbulence and win back the trust and confidence of advertisers.
