Friday, January 31, 2025

Amazon Returns Ads To X


Amazon is ramping up ad spending on Elon Musk’s X, according to people familiar with the situation, a major shift after pulling much of its advertising more than a year ago, when many brands had concerns about hate speech on the platform.

Amazon Chief Executive Andy Jassy was involved in the decision, which could result in the company spending significantly more on X. Apple, which pulled all of its ad dollars from X in late 2023, in recent weeks has had discussions about testing out ads on the platform, according to The Wall Street Journal citing a person familiar with the situation.

Some large companies that have cut or zeroed out advertising on X are re-evaluating their stances in a changing political and social climate. Musk, X’s owner, has championed a lighter touch in online content moderation and has emerged as one of the most powerful people in President Trump’s orbit. Business and world leaders have worked to improve relations with him, given his elevated role in Washington. 

Musk is leading the Department of Government Efficiency, a group that has planned to eliminate $2 trillion in government spending. He contributed roughly a quarter of a billion dollars to a super politi

Ad buyers said that some brands that are returning to X are doing so at spending levels that are still well below their spending before Musk acquired the company, then known as Twitter, for $44 billion in 2022.

The return of advertisers to X would bolster its balance sheet at a critical moment. The investment banks that lent Musk cash for the acquisition have struggled to offload that debt from their books. They are now arranging for a sale of senior debt at 90 to 95 cents on the dollar, The Wall Street Journal reported. Selling the debt will be easier if the company’s finances improve.

No comments:

Post a Comment