Linda Yaccarino’s sudden exit as CEO of X has left advertisers cautious amid persistent brand safety concerns and lingering doubts about the platform’s future as a dependable advertising venue.
A media buyer at a digital agency, who wasn’t authorized to speak to media, said only one of their clients has consistently advertised on X, primarily to reach politically active audiences. “It didn’t seem like [Yaccarino] was actually doing the job she had hoped to: make [brands] feel more comfortable with X,” the buyer said.
Following her departure, the agency has advised clients to pull back spending—especially those relying on leftover budgets, called slush funds, to test the platform.
Amber Tinker, paid social and influencer director at PMG, said X’s sales team under Yaccarino was responsive and offered significant incentives to bring brands back, including match credits early last year. For example, if a brand spent $50,000, they could receive an equal amount in ad credit. The platform also delivered attractive CPMs, sometimes dipping below $1, she said.
Yet several PMG clients witnessed their ads appearing alongside racially charged content. “Even if the platform is super efficient, the risk I take being on it right now is far greater than the results,” Tinker said, adding that she expects X to double down on brand safety following Yaccarino’s exit.
While X introduced tiered brand safety settings, ranging from standard to maximum control, under Yaccarino’s leadership, Tinker noted that advertisers still shoulder much of the burden. “On other platforms, I don’t have to go to that extent to protect my investment,” she said.
Since Elon Musk’s $44 billion acquisition of the platform in 2022, X has seen a roughly 50% spike in weekly hate speech incidents, including homophobic, transphobic, and racist slurs. Its subscription-driven AI chatbot, Grok, made by xAI, has also drawn criticism for spitting out antisemitic tropes. Such instances have long spooked major brands like Comcast and Disney, which fled in record numbers in 2023.
