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Walmart said Friday that it is scaling back its advertising on X, the social media company formerly known as Twitter, because “we’ve found some other platforms better for reaching our customers.”

Walmart’s decision has been in the works for a while, according to a person familiar with the move. Yet it comes as X faces an advertiser exodus following billionaire owner Elon Musk’s support for an antisemitic post on the platform. 

The retailer spends about $2.7 billion on advertising each year, according to MarketingDive. In an email to CBS MoneyWatch, X’s head of operations, Joe Benarroch, said Walmart still has a large presence on X. He added that the company stopped advertising on X in October, “so this is not a recent pausing.”

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“Walmart has a wonderful community of more than a million people on X, and with a 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,” Benarroch said.

Musk struck a defiant pose earlier this week at the New York Times’ Dealbook Summit, where he cursed out advertisers that had distanced themselves from X, telling them to “go f— yourself.” He also complained that companies are trying to “blackmail me with advertising” by cutting off their spending with the platform, and cautioned that the loss of big advertisers could “kill” X.

“And the whole world will know that those advertisers killed the company,” Musk added.


Elon Musk faces backlash from lawmakers, companies over endorsement of antisemitic X post

02:23

Dozens of advertisers — including players such as Apple, Coca Cola and Disney — have bailed on X since Musk tweeted that a post on the platform that claimed Jews fomented hatred against White people, echoing antisemitic stereotypes, was “the actual truth.”

Advertisers generally shy away from placing their brands and marketing messages next to controversial material, for fear that their image with consumers could get tarnished by incendiary content. 

The loss of major advertisers could deprive X of up to $75 million in revenue, according to a New York Times report. 

Musk said Wednesday his support of the antisemitic post was “one of the most foolish” he’d ever posted on X. 

“I am quite sorry,” he said, adding “I should in retrospect not have replied to that particular post.”


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