It is reported that the Volkswagen Group joined several other businesses in recommending that its auto brands that include Audi, Lamborghini, Bentley, and Porsche stop spending on Twitter because of fears that their advertisements could be displayed in conjunction with content that is not safe to view.
Elon Musk Twitter’s new CEO, on the morning of Friday (local time), acknowledged that the amount of advertising on the platform has slowed and blamed the decrease on the pressure of activists.
Tiffany Hsu, a tech reporter who covers information and misinformation, and writes for the New York Times stated that advertisers are cutting back amid massive cuts at the company.
Advertisers are also concerned that false information and hate speech will be allowed to flourish within the platforms under Elon Musk’s direction.
Civil rights organizations, including GLAAD as well as GLAAD and the Anti-Defamation League, held a conference call on Friday to urge other companies to drop Twitter because of mass reductions in staff, which they said was an inadequate content moderation staff according to in The New York Times.
It is reported that the Volkswagen Group joined several other firms in recommending its automobile brands that include Audi, Lamborghini, Bentley, and Porsche suspend their spending on Twitter because of fears that their advertisements could be displayed in conjunction with content that is not safe.
The Danish brewery Carlsberg Group also said it has advised its marketing teams to follow suit. The outdoor equipment and clothing retailer REI announced that it will suspend posts, as well as advertising “given the uncertainty surrounding Twitter’s capability to regulate negative content and ensure security for advertisers’ brands.”
Musk even Musk acknowledged the slump in advertising and tweeted in the early hours of Friday that Twitter “has suffered a significant decrease in revenues,” which was blamed on activist organizations pushing advertisers, according to the New York Times.
The first week of chaos Musk’s control of Twitter has brought Madison Avenue whiplash, as advertisers try to reconcile the billionaire’s promise to secure the platform for companies concerned over a rise in extreme views and fake narratives which include one that that was promoted through Musk himself, added Hsu.
Just a few minutes prior to when Musk tweeted saying that “nothing has changed in the world of content moderation, and we’ve done all we could to satisfy the activists” the ad-tracking platform MediaRadar announced statistics that showed that the number of advertisers using Twitter was down since May.
Twitter had 3900 users in May, as well as 2,300 advertisers in the month of August. The number jumped to 2,900 in September as per MediaRadar. The analytics firm found the following: General Motors, which paused its spending on Twitter this week, has been spending an average of USD 1.7 million per month on the site.
More than 1,000 new advertisers joined the platform per month until June, the time when Musk’s fight with Twitter was escalating as the number of advertisers dropped to 200.
In the wake of Musk’s tweets, a coalition of activists and civil rights organizations organized a news conference to advocate for a global boycott of advertising on Twitter according to Hsu.