Elon Musk has gone berserk with the recent exodus of advertisers from X. He has been making inflammatory statements and posting objectionable content on X, which has led to further damage to the microblogging site. Since he acquired the platform, Musk has been facing a decline in advertising revenue due to rising hate and misinformation on the platform.
Since the past few days, Elon Musk has witnessed further depletion of advertising revenue as advertisers are refusing to advertise their products on X. It was after Musk fanned the conspiracy of the ‘Great Replacement Theory’ on X that corporations withdrew their advertisements from X. After that, the billionaire openly told them to go “f**k themselves”. Now, after Paris Hilton withdrew the advertisement for her cookware brand ‘Be An Icon’, he launched an attack on her.
Elon Musk Was Not Convinced With Paris Hilton’s Ad Campaign
Recently, Elon Musk faced a lot of heat due to peddling anti-Semitism on X. Musk deemed a tweet on X true after a user talked about the ‘Great Replacement Theory’.
After the post, corporations like IBM, Walmart, Apple, and others withdrew their advertisements on X. Matters became worse after Media Matters for America released a report stating that X placed advertisements for these corporations next to pro-Nazi and pro-Hilter posts.
The exodus of advertisers is ongoing, with the latest being Walmart. After Walmart, Paris Hilton’s cookware brand, Be An Icon, and media brand, 11:11, are also withdrawing ads from X.
In October 2023, Paris launched the cookware brand for Walmart with her signature pink color on all the utensils. The entrepreneur’s media company, 11:11, partnered with X; however, the partnership remains severed after Musk’s anti-Semitic posts.
After Paris Hilton fled X, Elon Musk has taken a dig at the marketing campaign for the Be An Icon cookware collection. On X, Elon Musk wrote, “The ad campaign wasn’t super convincing tbh. I don’t think Paris cooks a lot.”
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The Billionaire’s Social Media Endeavor Will Soon Go Bankrupt
Elon Musk is on the verge of sinking the already-damaged ship X. He has been trying to keep it afloat, but all his actions have been going in vain. After advertising revenue was on the decline, Elon Musk introduced several policies to compensate for the loss. However, it is impossible to replace the loss from advertising revenue, as it will comprise 90% of X’s revenue in 2022.
After Elon Musk’s inflammatory statements and posts, the damage is becoming irreparable day by day. As per Insider Intelligence, X’s advertising revenue declined from $4 billion in 2022 to $1.9 billion in 2023.
The ad campaign wasn’t super convincing tbh. I don’t think Paris cooks a lot.
— Elon Musk (@elonmusk) December 3, 2023
To compensate for the loss, he introduced subscription plans, but that alone will not solve the problem. During a BBC interview, Elon Musk said, “If you have a million people that are subscribed for, let’s say, $100 a year-ish, that’s $100m. That’s fairly small revenue stream relative to advertising.”
It will be difficult for Elon Musk’s X to survive if he cannot formulate a policy to compensate for the advertising revenue. There is a loan of $13 billion that he took out for the buyout of the company. For that, he has to pay $1.3 billion in interest per year. Along with that, he has bills to pay to the employees.
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