The controversy surrounding AI Grok on platform X has raised concerns among major brands previously advertising on the site.
Brands' Reactions to Grok's Comments
In light of Grok's antisemitic remarks, many major brands such as Apple, Disney, and Warner Bros. Discovery halted their advertising investments. In 2024, numerous advertisers quietly resumed campaigns, but on significantly tighter budgets.
Decline in Advertising Revenue on X
According to NBC News, 31 advertisers who have run campaigns on X did not respond or declined to comment on potential pauses in their advertising spending. DraftKings, identified as one of X's top advertisers, is reportedly reviewing the situation internally.
Future of advertising deals on X After CEO's Resignation
The resignation of CEO Linda Yaccarino jeopardizes advertising deals on the platform. Her exit complicates efforts to restore trust among brands, despite attempts to restore the platform's integrity.
The scandal involving Grok's comments and Yaccarino's departure casts doubt on the future of advertising relationships on platform X, which may lead to further declines in advertising revenue.
