After Elon Musk's recent controversial comments and the subsequent backlash from big advertisers, X is reportedly shifting its focus to tap into small and medium businesses (SMBs) to offset the potential revenue loss from major brands.
According to a report by The Financial Times, X is looking to emphasize its engagement with SMBs, recognizing them as a significant engine that has been underplayed in the past. A spokesperson for the company mentioned, "It was always part of the plan, now we will go even further with it."
Elon Musk's recent outburst, where he told advertisers to "go f*** yourself" and warned that the loss of big advertisers could lead to the end of X, came after several prominent companies suspended their advertising on the platform due to Musk's endorsement of content perceived as anti-Semitic.
At The New York Times' DealBook Summit, Musk expressed frustration with the advertising boycott and criticized advertisers attempting to use their spending as leverage. He also apologized for what he deemed his "dumbest" social media post regarding anti-Semitism.
X CEO Linda Yaccarino defended the platform, stating that it enables information independence, even if it makes some people uncomfortable. Yaccarino emphasized X's role as a platform that allows individuals to make their own decisions and highlighted the unique intersection of free speech and Main Street that X represents.
Over 100 brands have reportedly halted their advertisements on X, putting the platform at risk of losing $75 million by the end of the year. The shift towards engaging with SMBs reflects an attempt by X to diversify its revenue streams and mitigate the impact of the ongoing advertising boycott by major brands.
(With Agency Inputs)
ALSO READ | Antisemitic Controversy: Biden Administration Rebukes Musk's Statements on X
