Disney Resumes Ad Spending On X Following Antisemitism Controversy

Several of X’s former top advertisers, including Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment, have cautiously resumed advertising on the platform this year. However, their ad spending remains significantly lower compared to previous years.

These brands, along with Apple, halted their campaigns in November 2023 following widespread backlash when their advertisements appeared alongside antisemitic content and hate speech.

The controversy intensified after X’s owner, Elon Musk, publicly endorsed an antisemitic conspiracy theory, a move that further alienated advertisers, including Disney, and raised concerns about the platform's content moderation policies.

New data from AdWeek highlights the lingering effects of the controversy. Disney, one of the brands that has resumed advertising, has spent only $550,000 on X in 2024—a stark contrast to its previous investments in the platform. The reduced spending reflects ongoing apprehension among major corporations about fully re-engaging with X amid fears of reputational damage.

While some advertisers have begun to cautiously return, their scaled-back campaigns signal that X is still working to rebuild trust with its former partners in the wake of the 2023 fallout.

Data reveals that Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment collectively spent less than $3.3 million on the platform between January and September 2024. This marks a staggering 98% drop from the $170 million spent during the same period in 2023.

X's leading advertisers this year include up-and-coming brands such as Karma Shopping, Canles Shoes, and Kueez Entertainment. Together, these companies have spent over $68 million, with each investing more than $12 million, leveraging the platform’s less crowded advertising space to boost their visibility.

“This suggests that X might move to a long-tail advertiser strategy, ” Meghan Fraze, chief product officer of MediaRadar, said. “This would benefit new brands that are looking for ways to connect with audiences without the intense competition. As X evolves, it could be forging an ad model that’s less dependent on the usual suspects.”

In November 2023, Disney briefly halted its use of X, pausing activity on the platform for 10 days.

During this period, several Disney-affiliated accounts, including @WaltDisneyCo, @DisneyParks, @Pixar, @MarvelStudios, and @StarWars, ceased posting. The pause coincided with Disney’s decision to halt ad spending on the platform following concerns over the placement of ads next to antisemitic content.

The move did not go unnoticed by X owner Elon Musk, who publicly lashed out at Disney CEO Bob Iger. In a post on X, Musk directly addressed Iger with an expletive-laden remark, saying, “go f-ck yourself.”

The tensions escalated in December 2023 when Musk continued his attacks on Iger, taking to X to call for the CEO’s dismissal. Musk further claimed, “Walt Disney is turning in his grave,” criticizing the company’s leadership and direction under Iger.

In February 2024, actress Gina Carano filed a lawsuit against Disney and Lucasfilm, claiming wrongful termination from her role in "The Mandalorian" in 2021. Elon Musk expressed his support for Carano by agreeing to fund her legal battle.

When asked about Musk’s involvement and Carano’s lawsuit during Disney’s Q1 FY2024 earnings call, CEO Bob Iger offered a brief, one-word response: “None.”

Earlier this year, in a detailed legal response to Gina Carano's lawsuit, Disney stated that their decision to terminate the former MMA fighter in 2021 stemmed from her choice “to publicly trivialize the Holocaust by comparing criticism of political conservatives to the annihilation of millions of Jewish people—notably, not ‘thousands’—was the final straw for Disney.”

Carano’s dismissal came after a series of controversial social media posts, including one where she compared being a Republican in modern-day America to being Jewish during the Holocaust.

"A short time ago in a galaxy not so far away, Defendants made it clear that only one orthodoxy in thought, speech, or action was acceptable in their empire, and that those who dared to question or failed to fully comply would not be tolerated. And so it was with Carano," the lawsuit stated, per WDWNT. "The rule of law still reigns over the Defendants’ empire …and Carano has returned to demand that they be held accountable for their bullying, discriminatory, and retaliatory actions—actions that inflicted not only substantial emotional harm, but millions of dollars in lost income."

She also faced backlash for mocking the use of masks to prevent the spread of COVID-19.