- The appointment of Linda Yaccarino as CEO of X, formerly often known as Twitter, has not appeared to bring U.S. advertisers back into the fold in a meaningful capability, according to an evaluation that MediaRadar shared with Marketing Dive.
- Of the three,100 brands promoting on X in May, the month Yaccarino stepped into the role, 34% selected not to return in June, per the firm’s tracking. Several corporations that represented a number of the platform’s biggest spenders in the primary half of 2022, including AT&T, Coca-Cola and General Motors, drastically cut their spending in H1 2023.
- X’s owner and Chief Technology Officer Elon Musk last month claimed that ad revenue was down about 50% year-over-year. Yaccarino this week indicated the situation has improved, though the recently rebranded firm clearly still has an extended road ahead toward stability.
Musk’s pick of Yaccarino to lead X was viewed as a potentially savvy move back in May. In her prior role spearheading ad sales at NBCUniversal, Yaccarino developed a sterling popularity for relationship-building with brands and agencies. NBCUniversal was also a heavy Twitter spender under Yaccarino’s tenure, leveraging the platform to promote blockbuster events just like the Olympics. The combination of established Twitter know-how and robust industry connections held promise.
While it’s still early days, MediaRadar’s evaluation indicates that Yaccarino’s hire has done little to move the needle to date, with an advertiser exodus continuing to pick up speed in June. The picture for the primary half, including the months before Yaccarino took the reins, was also grim.
A gaggle of top advertisers tracked by MediaRadar dumped $233 million into the platform formerly often known as Twitter during H1 2022 versus just $52 million in H1 2023, a 78% YoY decline. AT&T’s spending slid 96% YoY, while Coke was down 99% YoY and General Motors 89% YoY. Progressive insurance and Meta Platforms appeared to cut spending entirely over the period.
MediaRadar examined a sample of Twitter advertiser data from Jan. 1 through June 2023. The evaluation factored in in-feed image, carousel and video ads from a panel consisting of over 2 million U.S. users.
Since Yaccarino signed on as chief executive, the social media platform has continued to undergo changes on the directive of Musk which have baffled or frustrated consumers and types alike. Chief amongst those shifts is the rebrand to X, a part of Musk’s plan to eventually develop an “every part app” akin to China’s WeChat that may handle not only social posting, but additionally banking, digital payments and other types of media.
Third-party analyses have suggests that dropping the Twitter name and customary parlance like “tweeting” has hurt X’s brand valuation while making the platform even less appealing to advertisers that want to appear on a site with easy name recognition. There can also be a high degree of skepticism that Musk’s super-app idea will take hold within the U.S., where services like digital payments and banking are already widely adopted. Meta earlier this summer also launched a direct X competitor called Threads that saw an initial surge of engagement and buzz before leveling off, though the app continues to add new features.
“X is making changes to its platform and leadership, but advertiser concerns proceed to plague the corporate,” said Todd Krizelman, MediaRadar’s CEO, in an announcement attached to the report. “Not enough has been done to influence larger spenders, specifically, who proceed to re-evaluate their commitment.”
Per Musk’s own admission in July, X’s ad revenue has been down about 50%. In an interview this week with CNBC — her first since taking up the CEO mantle — Yaccarino said that X is “close to breakeven” and took credit for helping bring blue-chip corporations like Coke back on board. Yaccarino also claimed that X is a healthier and safer platform than it was last 12 months.
Research has indicated that hate speech on X has surged under Musk, who has regularly described himself as a free speech absolutist and the positioning as a “digital town square.” According to Yaccarino, X plans to bring back an advisory council consisting of enormous advertisers that Musk previously disbanded.
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