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Disney and Comcast lifted their U.S. spending on the app owned
by Meta by 40% and about 6% respectively in the two weeks from
Nov. 20, Sensor Tower data showed. Paramount, meanwhile, tripled
its spending on Snapchat.
The figures underscore the challenge facing Musk, who in late
November unleashed a profanity-laced tirade against advertisers
who had dropped X, formerly known as Twitter.
The billionaire has seen several advertisers flee the platform
after he endorsed an antisemitic post that falsely claimed
members of the Jewish community were stoking hatred against
white people. He has apologized for sharing the post.
"Brands are intelligent about these choices, and any brand
safety concerns will be met with a re-allocation of budgets away
from troubled platforms," said Felipe Thomaz, associate
professor of marketing at University of Oxford.
Disney, Comcast, Paramount and X did not immediately respond to
requests for comment.
Sensor Tower's data showed 51 of the top 100 U.S. advertisers on
X from October last year, when Musk bought the platform, have
ceased ad spending on it as of November 2023.
The platform has also seen a 16% decline in monthly active users
since the buyout, though the user engagement has remained
stable, the market intelligence firm said.
Bloomberg News reported on Tuesday X was on track to suffer a
big slump in ad revenue this year to roughly $2.5 billion.
"While platforms like X are likely to maintain a core niche of
users, the overall trends show consumers are swapping out
text-based social networking apps for photo and video-first
platforms," mobile analytics firm data.ai said in a report
earlier this month.
"Along with a series of mismanagement and public image fumbles
for X, there is a general shift of where news content is being
absorbed."
(Reporting by Jaspreet Singh in Bengaluru; Editing by Maju
Samuel)
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