Walmart recently joined a growing number of companies that have decided to drop their advertisements from Elon Musk’s X, formerly known as Twitter.
JUST IN: Walmart suspends all advertising on X.
— Watcher.Guru (@WatcherGuru) December 1, 2023
Bloomberg reported that Walmart, the largest retailer in the U.S., has pulled its advertisements from X, following in the footsteps of Disney, which chose to do the same.
A spokesperson for Walmart said the decision was made because the retailing company found other platforms it could use to reach its customers.
“We aren’t advertising on X as we’ve found other platforms to better reach our customers,” the spokesperson said.
X’s head of business operations, Joe Benarroch, said Walmart’s decision could hurt it in the long run, considering that the over 1 million followers of the retail company are mostly online shoppers.
“Walmart has a wonderful community of more than a million people on X, and with half a billion people on X, every year the platform experiences 15 billion impressions about the holidays alone with more than 50% of X users doing most or all of their shopping online,” Benarroch said.
Musk recently spoke at the summit, where he addressed the decision of some companies to pull their advertisements off X.
“Don’t advertise,” Musk said while accusing the advertisers of “blackmail.” Musk specifically called out Disney CEO Bob Iger, saying, “Hey Bob, if you’re in the audience … that’s how I feel.”
By the end of this quarter, X is projected to lose more than $75 million because of the advertisers leaving the platform.
But Musk appears unperturbed by the exodus. And with his new AI tool Grok being added for premium users, the company appears set to offer a unique and evolving experience for users. And, in the end, it is those users that advertisers are after. If companies like Walmart continue to disassociate from X, what companies will seek to take their place — and how much will they pay for that advertising?