Musk’s X platform rushes to focus on small and medium-sized enterprises after publicly scolding big advertisers
China Finance News, December 2 (Editor Shi Zhengcheng) – On Wednesday, Elon Musk, the world‘s richest man, who just finished his trip to Israel, returned to the United States. During a live interview, he publicly criticized top advertising companies such as Apple and Disney, using strong language to express his displeasure. Musk also stated that he does not want these large companies trying to “blackmail him with money” to advertise on his social media platform X.
In response to Musk’s comments, the X platform is redoubling its efforts to focus on small and medium-sized enterprises for advertising, in an attempt to offset the impact of large advertisers leaving the platform. The company admitted that they have neglected small and medium-sized enterprises for a long time, but it has always been part of the plan to focus on them. Now, the company is taking it a step further by establishing relationships with third parties and outsourcing some advertising sales to target small and medium-sized enterprises. Additionally, the platform plans to develop more subscription and data licensing services.
Despite the financial pressure and potential losses from large advertisers leaving the platform, the X platform seems determined to move forward with their new focus. Elon Musk’s forthright expression has attracted a new group of advertisers to the platform, and the management of X platform seems to have chosen to stay the course.
CEO Jacques Rino issued an all-staff letter praising Musk for sharing an “unparalleled and completely candid” perspective and future vision. Rino reiterated the company’s commitment to its principles and mission, despite outside criticisms.
However, the company faces financial challenges, including a reported annual interest that exceeds $1 billion on debts related to the Twitter acquisition. It is reported that the company’s latest valuation is only $19 billion, after Musk spent $44 billion to acquire Twitter last year.
The X platform is at a critical point in its advertising business and is facing tough choices in transformation. The company is looking at options such as outsourcing sales or adopting automation in order to better serve small and medium-sized enterprises.
Overall, Musk’s comments and the X platform’s response have stirred up the advertising landscape, and it remains to be seen how the platform’s new focus on small and medium-sized enterprises will impact its future.