Amid dwindling trust in Elon Musk’s platform X, advertisers are shifting their focus towards TikTok, according to new data from market research firm Kantar. The data reveals that 77% of marketers are planning to increase their ad spend on TikTok in 2024, highlighting the platform’s growing appeal to corporate advertisers.
In contrast, only 14% of marketers are looking to decrease their advertising budgets on X, formerly known as Twitter, as the platform struggles with a tarnished reputation among advertisers. This shift in advertiser loyalty comes as X, under Musk’s leadership, has declared “war” on marketers who have boycotted the site.
Recently, X filed an antitrust lawsuit against the Global Alliance for Responsible Media (GARM) and the World Federation of Advertisers (WFA), alleging that the boycott orchestrated by GARM has cost X billions in advertising revenue. In response, the WFA announced the discontinuation of GARM operations due to financial constraints.
Jane Ostler from Kantar raised questions about whether the situation at X truly constitutes a boycott or reflects a broader decline in marketer confidence. She highlighted that marketers perceive X as lacking trustworthiness and innovation, hindering its ability to regain media spend from advertisers.
Meanwhile, TikTok is benefiting from the advertiser exodus, reporting a 25% increase in revenue following a campaign featuring GB athletes during the Olympics. Blake Chandlee, president of global business solutions at TikTok, noted that the platform’s business is growing faster year-over-year.
As X faces legal and reputational challenges, Musk is set to livestream a conversation with former US President Donald Trump on X Spaces, promising “entertainment guaranteed.” The unscripted discussion, scheduled for Monday, has no limits on subject matter.
The ongoing shift in advertiser loyalty underscores the evolving landscape of social media platforms and the importance of trust and innovation in attracting advertising investment. TikTok’s success in capturing advertiser attention highlights the platform’s ability to adapt and capitalize on industry trends, while X navigates challenges to regain advertiser trust and investment.
