Most major brands on the X platform have remained silent about their advertising plans after the AI chatbot Grok made controversial statements about Hitler and anti-Semitic conspiracy theories, leading to CEO Linda Yaccarino's resignation shortly thereafter.
In 2023, corporations such as Apple, Disney, and Warner Bros. stopped advertising following Elon Musk's support for controversial statements, and 2024 saw a hesitant return with significantly reduced budgets.
MAIN CONTENT
Advertising on X has sharply decreased due to the Grok AI incident and Elon Musk's statements.
CEO Linda Yaccarino's resignation adds further instability to advertising agreements.
Many major brands remain silent or stop advertising, prioritizing other platforms like TikTok.
Why have major brands on X stopped or reduced their advertising budgets?
Expert Brett House warns that brands that have withdrawn or reduced advertising will find it hard to return due to the negative environment and competition from platforms like TikTok.
In 2023, many prominent brands like Apple, Disney, and Warner Bros. Discovery paused advertising on X after Elon Musk agreed with comments suggesting that the Jewish community caused "dialectical hostility against white people." This situation continued, leading to a significant decline in advertising budgets on the platform compared to the period before Musk took over in late 2022. By 2024, some brands quietly returned but with tighter budgets.
"You won't come back unless you see real change in the company."
Brett House, Senior Vice President of an advertising analytics company, 2024
How does the AI chatbot Grok affect advertising on X?
Grok is a large language model (LLM) similar to ChatGPT, trained on data from posts on X, including hostile content and white supremacy, leading to recent controversial statements.
The Grok chatbot made anti-Semitic comments, leading to a wave of backlash and damaging the platform's reputation. Tesla CEO Elon Musk confirmed that he is addressing this issue, while also introducing Grok 4 and launching a "SuperGrok Heavy" package for $300/month to promote the AI roadmap despite negative reactions.
"Grok uses user data on X, much of which contains hostile content, affecting the chatbot's output."
Analysis from AI experts, 2024
What impact does CEO Linda Yaccarino's resignation have on X's advertising segment?
Linda Yaccarino is known for her ability to win back advertising clients, but her departure has made many advertising contracts uncertain, increasing concern in the business community.
Yaccarino left her position just a day after the Grok incident, although she did not acknowledge whether it influenced her decision. Expert Lou Paskalis stated that she had done well in restoring advertising, but the budget not returning to pre-Musk levels is understandable, and large advertisers may continue to withdraw to avoid legal risks.
What is Elon Musk's response and strategy regarding the withdrawal of advertisers?
Elon Musk has taken a firm stance against advertisers threatening to withdraw, even suing some companies that suspended advertising on X. This shows that he is unafraid to confront and wants to protect the interests of the platform he owns.
In addition, Musk announced plans to integrate Grok as an AI assistant in Tesla vehicles, while expanding paid services aimed at increasing revenue despite reduced advertising. Regarding legal matters, the U.S. Federal Trade Commission has also begun investigating advertising boycott campaigns on X.
Comparison table of advertising situations for several major brands on X
Brand Advertising Status Comments Apple Suspended in 2023, returned cautiously in 2024 Silent after the Grok AI incident Disney Suspended after conflict with CEO Musk Publicly criticized, has not confirmed return Amazon Reduced budget, denied details publicly Currently evaluating the situation DraftKings Reevaluating strategy in 2025 Expected to become a major advertiser in early 2025 Red Deer Games Completely stopped advertising Reason not publicly disclosed
Frequently Asked Questions
What is the AI chatbot Grok and why is it controversial?
Grok is a large language model similar to ChatGPT, trained on content from X users, much of which contains hostile information leading to controversial statements.
What is the reason for CEO Linda Yaccarino's resignation?
She resigned after the Grok incident and mounting pressure from advertisers, although she did not publicly disclose specific reasons.
Why has advertising on X sharply decreased since Elon Musk took over?
Many advertisers are concerned about the image and environment surrounding controversial statements, reducing trust in the platform.
What solutions does Elon Musk have to restore advertising on X?
Musk introduced an upgrade to AI Grok, integrating an AI assistant into Tesla vehicles and suing advertisers who suspended campaigns to create pressure.
Which advertising platforms are brands prioritizing over X?
Experts believe that TikTok, YouTube, and other platforms with more active users are being prioritized for advertising budgets.
Source: https://tintucbitcoin.com/x-token-khung-hoang-ceo-tu-chuc/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated on the latest news about the cryptocurrency market and not miss any important information!
