2024: The year Elon Musk & X battled it out with the advertisers

In 2024, Elon Musk dominated headlines not only for his provocative political commentary and vocal support of right-wing causes but also for an intense battle over X's advertising revenue.

A year's worth of tension between Musk’s X and brands put him increasingly at odds with major advertisers, leading to a year-long saga of boycotts and legal battles that tested the bounds between free speech advocacy and commercial viability.

The contentious relationship between Musk and advertisers had its roots in his $44 billion acquisition of Twitter in 2022. Following the takeover, major brands including Apple, Disney, and Coca-Cola suspended their advertising on the platform, citing concerns over content moderation and brand safety.

The situation reached its nadir in November 2023 during Musk's appearance at The New York Times DealBook Summit, where his inflammatory comments toward advertisers led to another exodus of brands and an estimated loss of $75 million in advertising revenue.

This discord highlighted the growing tension between Musk's vision of "free speech absolutism" and advertisers' brand safety requirements.

The tide began to turn at Cannes Lions 2024, where Musk attempted to mend fences with the advertising industry.

Speaking alongside WPP CEO Mark Read on 19 June, Musk softened his stance from his infamous 2023 remarks telling advertisers to "go f*** yourself." 

He clarified his position, explaining that his previous comments were directed specifically at advertisers demanding censorship, not the industry as a whole.

The summer brought fresh controversy as Musk declared outright war on advertisers. In August, he filed an antitrust lawsuit in Texas federal court against the World Federation of Advertisers (WFA), several major corporations including Unilever, Mars, and CVS Health, and the Danish energy firm Orsted.

"We tried peace for two years; now it is war," Musk announced on X, alleging that GARM, WFA's brand safety initiative, had orchestrated a conspiracy to "collectively withhold billions of dollars in advertising revenue" from his platform.

The lawsuit specifically accused these organisations of conducting an illegal boycott that had caused X to suffer billions in losses.

By month's end, GARM had unexpectedly dissolved, sending shockwaves through the advertising community that had relied on the organisation's framework for brand safety guidelines since 2019.

The closure of this influential industry body marked a decisive shift in the relationship between social media platforms and advertising oversight mechanisms.

The conflict escalated to Capitol Hill in July, when Musk's allies in Congress summoned representatives from GARM, GroupM, and Unilever to testify before a House subcommittee regarding brand advertising decisions.

However, by October, signs of détente emerged as X dropped Unilever from its lawsuit. The consumer goods giant subsequently announced an agreement with X, citing the platform's commitment to meeting their responsibility standards.

The year's most significant turnaround came in November, with MediaRadar data revealing increased advertising investment from major corporations including Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment.

This resurgence coincided with Donald Trump's success in the US elections, a development that aligned with Musk's public support for the Republican candidate, including his reported $119 million campaign contribution.