Walmart Withdraws Advertising From X: Joining The Exodus Amidst Rising Concerns

Walmart , America's largest company by revenue and single biggest employer, has decided to halt its advertising on the social media platform X, previously known as Twitter. This decision aligns Walmart with a growing list of brands distancing themselves from the platform, which is currently owned by Elon Musk . According to a Reuters report, the retail giant cited the search for more effective customer engagement as the primary reason for the withdrawal. A spokesperson from Walmart clarified, “We aren’t advertising on X as we’ve found other platforms to better reach our customers,”.

Behind the Scenes: The Timing and Details

While Walmart's decision to pull off ads on X was made public on December 1, Joe Benarroch , the head of operations at X, revealed that the company had not placed ads on the platform since October. Instead, X has been focusing on organic engagement within its community of over one million members.

Benarroch highlighted the positive aspects of Walmart's presence on X, stating,“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,"

Industry Woes: Signs of Trouble Ahead

Industry experts are warning of impending turmoil for X as more advertisers consider deserting the platform following a series of controversial events involving Elon Musk . Major corporations, including Walt Disney and Warner Bros. Discovery, had already halted advertising efforts on X in November after Musk endorsed an antisemitic post. Although Musk apologized later, his outburst against fleeing advertisers during the New York Times DealBook event added fuel to the fire.

A senior executive from a major ad-buying agency reported that X's ad sales representatives seemed disconcerted post-Musk's outburst, offering limited engagement in discussions.

Corporate Exodus: Walmart Adds to a Growing List

Walmart's exit from X adds to the growing list of companies that have pulled ads from the platform. Notable names such as Apple, Disney, IBM, Comcast, and Warner Bros. Discovery are among the businesses no longer buying ads on X. According to Sensor Tower data, these companies collectively constituted 7 percent of the total US ad spend on X until October this year. The platform now faces the alarming reality of losing both corporate advertisers and potential revenue from political candidates after lifting its ban on political ads.

Musk's Missteps: A Series of Self-Inflicted Wounds

Elon Musk's recent actions have triggered a cascade of events leading to the departure of major advertisers. Musk's endorsement of an antisemitic post, followed by a profanity-laden diatribe against advertisers, has not only strained relationships but also put X's financial stability at risk. His attempt to smooth things over at The New York Times' DealBook event further escalated the situation, potentially causing his company to lose $75 million.

As Walmart joins the ranks of advertisers distancing themselves from X, the platform faces a challenging road ahead, grappling with reputational damage and financial uncertainties. The exodus of major brands raises questions about X's ability to recover and regain advertisers' trust in the future.