Content:
1. What's it all about? A brief overview of the conflict between X (formerly Twitter) and the advertising world.
2. Why Twitch Is in the Crosshairs? A Look at the Accusations
3. Market reaction: what do brands and agencies think?
4. What does this mean for the crypto market and digital advertising?
5. Who wins the information war?
1. What are we talking about?
X owner Elon Musk has filed a lawsuit against Twitch and several other companies, accusing them of an illegal advertising boycott strategy. Musk claims that major advertising agencies and brands have conspired to ignore X as a platform, which has significantly reduced the company's revenue — by 60% in the U.S. alone. The platform also filed similar lawsuits in August against other advertising giants.
2. Why is Twitch in the crosshairs?
At first glance, it seems odd that a streaming platform would be on X’s radar. However, this is a case of “global brand safety,” developed by the GARM alliance. This standard is supposedly used for boycotts to block platforms with controversial content. Musk claims that Twitch, along with others, is part of this scheme.
3. Market reaction: what do brands and agencies think?
According to research from Kantar, only 4% of advertisers believe that advertising on X is safe for the brand, while Google has a rate of 39%. This leads to 26% of companies planning to reduce their spending on X in 2025. Major brands like Disney and Apple have already stopped advertising on the platform.
Musk added in the interview that brands leaving X are not only hurting the platform, but also free speech, backing up his position with a famous quote that's hard for even a trader to forget: "If you want to leave, then... you know what to do!"
4. What does this mean for the crypto market and digital advertising?
Such information wars can affect investor sentiment. For the crypto market, which heavily relies on platforms like X to promote projects, open advertising and independence are important. If X wins, it could set a precedent, strengthening the position of independent advertising platforms like Rumble. However, the market has reacted cautiously, as the legal proceedings could drag on, creating uncertainty.
5. Who wins the information war?
In the short term, X is struggling to regain the trust of advertisers. But Musk, a seasoned strategist, is betting on building its reputation through legal precedents and content innovation.
