Apple and Disney suspend ads on X after Musk’s speeches – 11/18/2023 – Market

The repercussions of Elon Musk’s endorsement of an anti-Semitic conspiracy theory on X, formerly Twitter, gained strength this Friday (17) when large advertisers halted their advertising spending on the social network.

Walt Disney, Lionsgate and Paramount said they have paused their spending on X. Apple, which spends tens of millions of dollars a year on the platform, has also suspended advertising, according to a person familiar with the matter.

The companies followed IBM’s decision, which announced a reduction in advertising spending on X on Thursday (16).

Musk, who bought Twitter last year and renamed it X, has been the subject of controversy for months for allowing and even encouraging anti-Semitic comments on the site.

The situation intensified on Wednesday (15), when the technology billionaire agreed with a post on X that accused Jewish people targeted by anti-Semitism during the Israel-Hamas war of trying to “impose the same ‘us versus they’re complaining about” and support the immigration of “hordes of minorities”.

“There’s a truth there,” replied Musk.

Jewish groups compared the statement in the original post to a belief known as replacement theory, a conspiracy theory that posits that non-white immigrants, organized by Jews, aim to replace the white race. That idea fueled Robert Bowers, who expressed hatred toward Jewish people online before killing 11 worshipers at the Tree of Life synagogue in Pittsburgh in 2018.

This Friday (17), the White House condemned Musk, 52, for promoting the anti-Semitic conspiracy theory. White House spokesman Andrew Bates said in a statement that it was “unacceptable to repeat the disgusting lie behind the most fatal act of anti-Semitism in American history at any time, much less a month after the deadliest day for the Jewish people since the Holocaust.”

An X spokesperson declined to comment on the advertising pauses, and Apple did not respond. Apple’s decision was initially revealed by the Axios portal, and Lionsgate’s, by Bloomberg.

Linda Yaccarino, CEO of X, posted on the website on Thursday (16) that the company had been “extremely clear about our efforts to combat anti-Semitism and discrimination.” But this Friday (17), Musk agreed with a post on X that suggested advertisers like IBM were moving away from the platform to save their reputation.

He later said that accounts that made “clear calls for extreme violence” would be suspended, highlighting two phrases associated with Palestinian supporters that would not be tolerated on the site.

Advertisers have been wary of X since Musk bought the social network last October and said he wanted more freedom of speech and would relax content moderation rules. This meant the platform could theoretically display ads from brands alongside posts with offensive or hateful speech.

Many companies, including General Motors and Volkswagen, have been hesitant at various times over the past year to have their ads appear alongside a documented increase in hate speech, misinformation and foreign propaganda on X.

In April, Musk said nearly all advertisers had returned, without indicating whether they were spending at the same levels; he subsequently noted that advertising revenue had fallen by 50%.

Musk also wavered between threatening any advertiser who dared to halt their spending and wooing them by choosing Yaccarino, a former high-ranking NBCUniversal executive, to replace him as CEO.

He has publicly feuded with major advertisers like Apple and has had a turnover of sales executives tasked with maintaining relationships in the advertising industry. Major advertising companies like IPG have urged their clients to move away from X.

Advertising accounted for about 90% of Twitter’s revenue before Musk bought the company. Last month, X informed employees that the company was valued at $19 billion. That was down from the $44 billion Musk paid.

Heightened sensitivity toward anti-Semitism, Musk’s propensity for public fights and general fatigue after months of controversy surrounding X left many advertising professionals hesitant to speak out this Friday.

“Clients have always had to make decisions about what content they want or don’t want to be associated with,” said Renee Miller, founder of advertising agency Miller Group in Los Angeles, in an email. “We generally advise our clients not to take an overtly public political position.”

IBM, which cut about $1 million in advertising spending it had committed to X for the rest of the year, said Thursday it has “zero tolerance for hate speech and discrimination.”

The technology company made the decision following a report this week from Media Matters for America, a left-leaning group, which said ads from companies including Apple and IBM were appearing on X alongside posts supporting white nationalism and Nazism. Musk posted on Thursday night that “Media Matters is an evil organization.”

Angelo Carusone, president and CEO of Media Matters, said the “calling us evil” for pointing out what was in X is “no different than any right-wing account we highlight.” He added that X “will not only lose Apple money, but also the cornerstone of its strategy to win back advertisers.”