Disney and Comcast Boost Ads on Instagram
Big U.S. companies, such as Walt Disney and Comcast, have ramped up their advertising spending on Instagram. This move comes as they pulled commercials on X last month due to concerns over antisemitic content.
Sensor Tower data reveals that Disney and Comcast have increased their U.S. spending on Instagram, owned by Meta, by 40% and around 6% respectively during a two-week period starting from November 20. In a similar vein, Paramount tripled its spending on Snapchat.
This surge in spending highlights the difficulties faced by Elon Musk, who recently made a profanity-laden outburst against advertisers that dropped X (formerly known as Twitter). Musk’s endorsement of an antisemitic post, which falsely accused members of the Jewish community of fueling hatred against white people, prompted several advertisers to abandon the platform. According to Felipe Thomaz, an associate professor of marketing at the University of Oxford, brands are making calculated choices and will shift their budgets away from problematic platforms to ensure brand safety.
At the time of writing, Disney, Comcast, Paramount, and X have not responded to requests for comment.
X Faces Diminishing Advertiser Support
According to Sensor Tower data, 51 out of the top 100 U.S. advertisers on X have ceased ad spending on the platform since Elon Musk acquired it in October of last year. This loss of advertiser support coincides with a 16% decline in monthly active users on X since the acquisition. However, despite the decreasing user base, user engagement has remained stable.
A recent report by mobile analytics firm data.ai suggests that consumers are shifting away from text-based social networking apps in favor of photo and video-first platforms. While X is expected to maintain a core niche of users, the broader trend indicates a growing preference for platforms like Instagram over text-based alternatives.