Major advertisers, including IBM, Disney, and Comcast, return to X amid FCC scrutiny of NewsGuard

After nearly a year-long boycott, major advertisers have resumed their campaigns on X (formerly Twitter). Companies including IBM, Disney, Comcast, Discovery, Warner Bros., and Lionsgate Entertainment have returned to the platform, signaling renewed trust in X’s leadership under CEO Linda Yaccarino. The move is part of Yaccarino’s ongoing efforts to rebuild ad partnerships and restore confidence in the platform.

In a post on X, Elon Musk expressed gratitude in a post, stating:

“Just want to say that we super appreciate major brands resuming advertising on our platform! Thanks @lindayaX and the whole team for your hard work in restoring confidence in our platform and ensuring that advertising content only appears where advertisers want it shown.”

https://twitter.com/elonmusk/status/1857471850676367646

According to a report from Adweek, advertisers spent just $3.3 million on X from January to September 2024, a significant drop from the $170 million spent during the same period in 2023. While this marks a recovery effort, it also reflects broader uncertainty about ad spending on X.

A survey by Kantar suggests that 26% of senior marketers plan to cut spending on X in 2025. However, the political landscape may be shifting the narrative. Max Willens, an analyst at Emarketer, noted:
“X’s owner now has the ear of the president-elect, a man who has a long history of helping his friends and punishing his enemies. Sending at least a trickle of ad spending toward X may be seen as good for business, albeit in an indirect way.”

NewsGuard Faces FCC Scrutiny

Meanwhile, NewsGuard, a company that rates the credibility of news websites, is under scrutiny from the Federal Communications Commission (FCC). Commissioner Brendan Carr has called on tech giants Alphabet (Google), Apple, Meta, and Microsoft to provide information on their connections to NewsGuard and their role in alleged censorship activities over the past four years.

In his letter to these companies, Carr accused them of participating in a “censorship cartel” alongside advertising agencies, fact-checking organizations, and the Biden administration. He questioned whether their reliance on NewsGuard’s ratings aligns with the “good faith” requirement of Section 230, the liability shield for tech companies.

Carr’s letter pointed out instances where NewsGuard reportedly favored Chinese state propaganda over American outlets and aggressively penalized sites reporting on the COVID-19 lab leak theory. He further criticized NewsGuard’s “Vaccine Against Misinformation” approach, calling it Orwellian and part of a broader effort to control online narratives. TechStartups also faced the impact of NewsGuard’s actions. Our platform was censored during the 2020 COVID-19 pandemic.

FCC’s Carr Calls for Action

Carr’s concerns extend to potential violations of Section 230 if companies use NewsGuard’s ratings to justify content moderation or advertising decisions. He demanded detailed records from tech companies about their partnerships with NewsGuard and shared the letter on X, stating:
“Facebook, Google, Apple, Microsoft & others have played central roles in the censorship cartel. The Orwellian named NewsGuard along with ‘fact-checking’ groups & ad agencies helped enforce one-sided narratives. The censorship cartel must be dismantled.”

Elon Musk echoed Carr’s sentiments, responding:
“The censorship and advertising boycott cartel must end now!”

The censorship and advertising boycott cartel must end now! https://t.co/jX7yyQspa3

— Elon Musk (@elonmusk) November 15, 2024

The Bigger Picture

As advertisers cautiously return to X and NewsGuard faces intensified scrutiny, the developments highlight shifting dynamics in the media and tech industries. While X works to rebuild trust, the growing debate over censorship and the role of organizations like NewsGuard could shape the future of digital advertising and free speech online.