Walmart has joined the growing list of companies stepping back from advertising on X (formerly Twitter), aligning itself with others distancing from the Elon Musk-owned platform, according to a Reuters report. The retail giant clarified that it found better platforms to connect with customers, signaling a shift away from X.
While Walmart’s decision to cease advertising on X was made public on December 1, Joe Benarroch, head of operations at X, stated that the company hadn’t placed ads on the platform since October. Instead, X focused on engaging its community of over a million members organically.
Despite boasting a significant user base, X faces impending challenges, with ad industry experts warning of more advertisers leaving the platform due to recent controversies sparked by Musk’s actions. Walt Disney and Warner Bros.
Discovery halted their advertising on X after Musk’s endorsement of an antisemitic post. Musk’s subsequent apology didn’t alleviate concerns, especially after his confrontational remarks at a New York Times event.
The fallout from these events has impacted X’s relationship with major corporations, including Apple, IBM, Sony, Disney, Comcast, and Paramount. These withdrawals accounted for a considerable portion of the US ad spend on X until October, as reported by Sensor Tower data. The platform now confronts the risk of losing not only corporate advertisers but also potential revenue from political ads, which had reappeared after a ban was lifted.