Advertisers will spend far less on X in 2025

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why X is at risk of losing a lot of money.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:04With signs of an economic slowdown emerging, Wall Street is focused on one thing.

00:09How many people are working?

00:11There are new clues Thursday from hiring company ADP.

00:14Only 99,000 private sector jobs were created in August, the smallest number in more than

00:19three and a half years.

00:21But in a positive offset, weekly applications for jobless benefits dropped, according to

00:26data from the Labor Department, which shows layoffs remain tame.

00:30These numbers set the stage for the government's comprehensive monthly jobs report on Friday.

00:37In other news, the ad sales desert at X is going to get a lot worse next year.

00:42A record number of companies plan to pull back their ad spending on the site in 2025,

00:48according to a global survey by market research firm Cantor.

00:51Twenty-six percent of ad buyers say they will reduce spending on X in 2025.

00:56Only four percent believe their ads will be placed away from extreme content on the platform,

01:01compared to 39 percent on Google properties like YouTube.

01:05Advertisers have grown tired of the antics of X's billionaire CEO, Elon Musk, who promised

01:11to clean up the site, but instead has pushed misinformation and other misdeeds.

01:16Musk recently sent out an AI-doctored photo of Democratic presidential nominee Kamala

01:21Harris dressed in an old-school communist uniform.

01:25And X was forced to go dark in Brazil because Musk would not agree to that country's content

01:31moderation rules ahead of an election.

01:34Those things point to a problem that showed up in the survey's findings.

01:38In a statement, Ganka Bubanek, Cantor's global thought leadership director for media, said,

01:43X has changed so much in recent years and can be unpredictable from one day to the next.

01:49It's difficult to feel confident about your brand's safety in that environment.

01:53Since Musk took over the company, formerly known as Twitter, in 2022, the site has lost

01:58billions of dollars in revenue.

02:00That'll do it for your daily briefing from the New York Stock Exchange.

02:03I'm Conway Gittins with the Street.

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