Elon Musk, the unpredictable billionaire, found himself in Cannes, France, at the prestigious Cannes Lions advertising festival, where he was on a mission: to court major advertisers for his platform, X. However, his efforts took a rocky turn during an interview with Mark Read, CEO of WPP, a leading marketing firm.
Read didn’t hesitate to confront Musk about his past disdain for the advertising industry, reminding him of his infamous remark in November 2023 (DealBook Summit – New York) when he bluntly told advertisers to “go f**k themselves.” Addressing Musk directly, Read asked, “Why did you say that and what did you mean?”
In response, Musk adopted a notably different tone from his previous outbursts. He clarified that his remarks were not aimed at “advertisers as a whole,” signaling a mild retreat from his earlier hostility. Musk acknowledged that advertisers have the right to ensure their brands appear alongside content they find suitable. “That’s totally fine,” he conceded, though it appeared to be a belated acknowledgment rather than a consistent stance.
However, Musk’s attempt to normalize his position fell short when he suggested advertisers were demanding absolute control over content, which isn’t the case. The real concern for advertisers has been X’s history of placing ads next to objectionable content like hate speech—a practice that has prompted many major brands to withdraw their advertising dollars.
Moreover, Musk’s own controversial behavior has compounded advertisers’ reluctance. From promoting conspiracy theories to attacking critics and undermining free speech, Musk’s actions have frequently clashed with the values of blue-chip brands. His past endorsement of antisemitic theories, later retracted under pressure, only added to the industry’s wariness.
These factors have driven major advertisers away from X, dealing a severe blow to its revenue model heavily reliant on advertising. Musk himself admitted that the exodus of advertisers had a potentially catastrophic impact on X’s financial health.
Now, facing the daunting task of wooing advertisers back, Musk faces a significant challenge. Despite his efforts to convey a more conciliatory message at events like Cannes Lions, the erratic nature of his leadership and the platform’s track record of unsafe content remain major hurdles. Advertisers are wary of associating their meticulously crafted brands with a platform and CEO known for unpredictability and controversy.
Until Musk can align his platform’s practices with the assurances he offers in public forums, it’s unlikely that major brands will return in large numbers. The gap between Musk’s sales pitch and the reality of X’s operational challenges underscores the uphill battle he faces in rebuilding trust and reclaiming advertising revenue.
