WPP chief executive Mark Read has suggested that Twitter’s recent re-brand to ‘X’ could prove very problematic for brands when deciding whether or not to advertise on the Elon Musk-owned platform.
Musk himself recently admitted that X had lost around 50% of its overall ad revenue since his takeover of the social media site in October last year; and the continued uncertainty his decisions provoke has led brands to take up a “wait and see” approach to advertising on X, Read said.
He added that the rebrand “took people a little bit by surprise”, and that “Clients cannot understand where the platform is heading and what its character will be in the future.” He continued: “Some clients are dipping their toe back in, but overall I’d describe it as ‘wait and see’.”
The news comes after X filed a lawsuit against anti-hate speech group the Centre for Countering Digital Hate (CCDH), which it accused of ‘illegally’ gathering data to produce damning reports on the state of X’s hate speech policies – which in turn led to several major brands pausing their advertising on the platform.
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Many have viewed Musk’s recent appointment of CEO Linda Yaccarino as an undisguised bid to win back the trust of advertisers through her strong reputation within the media sector, having held a succession of top roles at firms such as NBC Universal and Turner.
A self-proclaimed ‘free speech absolutist’, Musk revealed over the weekend that X would cover the legal fees of anyone “treated unfairly by their employer due to posting or liking something on [X].” He added that there would be ‘no limit’ to the cost of such fees.
If you were unfairly treated by your employer due to posting or liking something on this platform, we will fund your legal bill.
No limit.
Please let us know.
— Elon Musk (@elonmusk) August 6, 2023
In a damning indictment of the platform’s ongoing turmoil, the Japanese government has urged X to take down a fake account impersonating its finance minister Masato Kanda. According to the BBC, the fake account has now apparently been suspended.
