{"id":38156,"date":"2025-01-20T14:17:25","date_gmt":"2025-01-20T14:17:25","guid":{"rendered":"https:\/\/peraltafinancing.com\/advertising\/how-elon-musk-and-xs-decision-to-sue-advertisers-may-have-just-backfired\/"},"modified":"2025-01-20T14:17:25","modified_gmt":"2025-01-20T14:17:25","slug":"how-elon-musk-and-xs-decision-to-sue-advertisers-may-have-just-backfired","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=38156","title":{"rendered":"How Elon Musk and X&#8217;s decision to sue advertisers may have just backfired"},"content":{"rendered":"<p> <br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/sm.mashable.com\/mashable_in\/article\/h\/how-elon-m\/how-elon-musk-and-xs-decision-to-sue-advertisers-may-have-ju_4hzn.jpg\" \/><\/p>\n<div id=\"article\">\n<p>Just earlier this week, Elon Musk&#8217;s X <a href=\"https:\/\/mashable.com\/article\/elon-musk-x-twitter-linda-yaccarino-lawsuit-ad-boycott\" target=\"_self\" data-ga-click=\"1\" data-ga-label=\"$text\" data-ga-item=\"text-link\" data-ga-module=\"content_body\"><u>announced<\/u><\/a> that it was suing the constituent members of an initiative known as the Global Alliance for Responsible Media (GARM). <\/p>\n<p>On Thursday, just days after X&#8217;s federal antitrust lawsuit was filed, the organization behind GARM, the World Federation of Advertisers (WFA), announced that it was dissolving GARM.\u00a0The WFA and several corporations were the suit&#8217;s named defendants, not GARM itself.<\/p>\n<p>X claimed in its lawsuit that WFA and a number of its major advertising members &#8220;conspired&#8221; to \u201ccollectively withhold billions of dollars in advertising revenue\u201d<\/p>\n<p>After the news was announced, X CEO Linda Yaccarino took to X to celebrate GARM&#8217;s end. However, at least one adtech watchdog is claiming that this might actually backfire for X.<\/p>\n<h2>GARM shuts down<\/h2>\n<p>According to a letter from the WFA that was sent to its members, as first reported by <a href=\"https:\/\/www.businessinsider.com\/ad-group-to-suspend-garm-initiative-following-elon-musk-lawsuit-2024-8\" target=\"_blank\" data-ga-click=\"1\" data-ga-label=\"$text\" data-ga-item=\"text-link\" data-ga-module=\"content_body\" title=\"(opens in a new window)\"><u>Business Insider<\/u><\/a>, the group was &#8220;discontinuing&#8221; GARM as a result of X&#8217;s lawsuit as the initiative was a non-profit with limited resources. The GARM initiative, which helped members avoid advertising on harmful websites, was staffed by only two full-time employees.<\/p>\n<p>However, the WFA will continue on and challenge X&#8217;s lawsuit, saying they committed no wrongdoing.<\/p>\n<p>The Republican-led House Judiciary Committee, whose report was used by X in its lawsuit, <a href=\"https:\/\/x.com\/JudiciaryGOP\/status\/1821587859700424933\" target=\"_blank\" data-ga-click=\"1\" data-ga-label=\"$text\" data-ga-item=\"text-link\" data-ga-module=\"content_body\" title=\"(opens in a new window)\"><u>deemed<\/u><\/a> GARM&#8217;s closure a &#8220;big win for the first amendment.&#8221;<\/p>\n<section x-data=\"window.newsletter()\" x-init=\"init()\" class=\"relative p-8 my-12 mx-auto w-full max-w-3xl border md:p-12 md:my-16 border-secondary-300\" data-ga-impression=\"\" data-ga-category=\"newsletters\" data-ga-module=\"incontent_nl_signup\" data-ga-label=\"mashablelightspeed\">\n<p>\n            Mashable Light Speed\n        <\/p>\n<\/section>\n<blockquote class=\"twitter-tweet\"><p>\n    <a class=\"text-gray-600\" href=\"https:\/\/twitter.com\/lindayaX\/status\/1821594759187853395\" target=\"_blank\" rel=\"noopener\" title=\"(opens in a new window)\"><br \/>\n        Tweet may have been deleted<br \/>\n    <\/a>\n<\/p><\/blockquote>\n<p>X CEO Linda Yaccarino quoted the House Judiciary Committee post in her own reply.<\/p>\n<p>&#8220;No small group should be able to monopolize what gets monetized,&#8221; Yaccarino said. &#8220;This is an important acknowledgement and a necessary step in the right direction. I am hopeful that it means ecosystem-wide reform is coming.&#8221;<\/p>\n<p>Mashable reached out to X for comment. In a reply, X emailed a link to Linda Yaccarino&#8217;s statement above.<\/p>\n<h2>Not so fast, X<\/h2>\n<p>However, Check My Ads, an adtech watchdog that has successfully taken on hateful websites and ad platforms that serve advertising on them, says that X&#8217;s celebration is premature.<\/p>\n<p>&#8220;Advertisers know a bad ad placement when they see one,&#8221; said Claire Atkin, co-founder of Check My Ads, in a statement provided to Mashable. &#8220;The reality is today\u2019s decision means even more advertisers will flee X, and quickly so they\u2019re not targeted in the future.&#8221;\u00a0<\/p>\n<p>In an <a href=\"https:\/\/checkmyads.org\/elon-musk-garm-lawsuit\/\" target=\"_blank\" data-ga-click=\"1\" data-ga-label=\"$text\" data-ga-item=\"text-link\" data-ga-module=\"content_body\" title=\"(opens in a new window)\"><u>analysis<\/u><\/a> of GARM&#8217;s closure on its own website, Check My Ads&#8217; founders say that the more likely outcome is that advertisers will now be less likely to advertise on X as they won&#8217;t base advertising decisions on GARM&#8217;s recommendation. Check My Ads points out that X was just <a href=\"https:\/\/x.com\/XBusiness\/status\/1807812681803452741\" target=\"_blank\" data-ga-click=\"1\" data-ga-label=\"$text\" data-ga-item=\"text-link\" data-ga-module=\"content_body\" title=\"(opens in a new window)\"><u>touting<\/u><\/a> how it was reinstated into GARM just last month. <\/p>\n<p>X posted that the reinstatement was part of its &#8220;deep commitment to brand safety.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\"><p>\n    <a class=\"text-gray-600\" href=\"https:\/\/twitter.com\/XBusiness\/status\/1807812681803452741\" target=\"_blank\" rel=\"noopener\" title=\"(opens in a new window)\"><br \/>\n        Tweet may have been deleted<br \/>\n    <\/a>\n<\/p><\/blockquote>\n<p>So to recap, X had just regained GARM as an ally, and then it filed a lawsuit, apparently causing its ally to disband, leaving \u2014 assuming it really was a monopoly \u2014 no comparable initiative in existence to recommend that advertisers make deals with X.<\/p>\n<p>&#8220;Everyone can see that advertising on X is a treacherous business relationship for advertisers,&#8221; Atkin&#8217;s said in Check My Ads&#8217; statement to Mashable. &#8220;And we know, based on public reporting, X doesn\u2019t have all that many to lose.&#8221;<\/p>\n<section class=\"mx-auto max-w-7xl\">\n<\/section><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><script>\n    var facebookPixelLoaded = false;\n    window.addEventListener('load', function(){\n        document.addEventListener('scroll', facebookPixelScript);\n        document.addEventListener('mousemove', facebookPixelScript);\n    })\n    function facebookPixelScript() {\n        if (!facebookPixelLoaded) {\n            facebookPixelLoaded = true;\n            document.removeEventListener('scroll', facebookPixelScript);\n            document.removeEventListener('mousemove', facebookPixelScript);\n            !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n                n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;\n                n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;\n                t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,\n                document,'script','\/\/connect.facebook.net\/en_US\/fbevents.js');\n            fbq('init', '1453039084979896');\n            fbq('track', \"PageView\");\n        }\n    }\n<\/script><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Just earlier this week, Elon Musk&#8217;s X announced that it was suing the constituent members of an initiative known as the Global Alliance for Responsible Media (GARM). On Thursday, just days after X&#8217;s federal antitrust lawsuit was filed, the organization behind GARM, the World Federation of Advertisers (WFA), announced that it was dissolving GARM.\u00a0The WFA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":38157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12023],"tags":[13873,24580,18355,18923,4971,7678],"dealstore":[],"offerexpiration":[],"class_list":["post-38156","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advertising","tag-advertisers","tag-backfired","tag-decision","tag-elon","tag-musk","tag-sue"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Elon Musk and X&#039;s decision to sue advertisers may have just backfired - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=38156\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Elon Musk and X&#039;s decision to sue advertisers may have just backfired - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Just earlier this week, Elon Musk&#8217;s X announced that it was suing the constituent members of an initiative known as the Global Alliance for Responsible Media (GARM). 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