Advertising Exodus: Why Brands Are Fleeing X

Advertising agencies are increasingly concerned about content moderation on social media platforms. This is impacting their advertising strategies, particularly on X, where many have reduced or stopped advertising altogether. The concerns stem from the potential for ads to appear alongside controversial content, damaging brand reputation. "In 2022, a lot of these agencies stopped advertising as much, or completely stopped advertising on X," explains a marketing professional in New York City. The FTC's investigation into the largest advertising agencies globally further underscores the gravity of the situation. This trend highlights the ongoing challenges platforms face in balancing free speech and protecting advertisers' interests. The situation is further complicated by the recent departure of X's CEO, which has resulted in a 53% drop in the company's stock price. The future of advertising on X remains uncertain, with advertisers demanding greater control over content adjacency.