Major US-based corporations have ramped up their advertising investments on Instagram, reversing a temporary halt in commercials on another platform last month.
These companies paused their advertising efforts on the platform owned by Elon Musk after he engaged in a contentious exchange with a user involving antisemitic content.
Disney, for instance, has increased its advertising spending on the platform owned by Meta by 40%, while Comcast has boosted its advertising investment on Instagram by approximately 6%. This data pertains to two weeks commencing on November 20.
In contrast, Paramount has significantly increased its advertising expenditure on Snapchat, tripling its spending.
In late November, Musk responded to advertisers who boycotted his social media platform with a blunt message: “Go f**k yourself.”
He directed this statement to more than 100 advertisers who had chosen to pause their advertising on the platform, during The New York Times’s Dealbook conference. Musk’s message was clear: he did not want advertisers attempting to influence him through financial pressure.
He also took a swipe at Disney CEO Bob Iger, who had earlier stated that he wanted to disassociate his company from any involvement with Musk.
Iger explained, “We felt that the association with Elon Musk and the platform in question was not necessarily a positive one for us.”
Reportedly, over 100 advertisers, including notable names like Apple and Disney, had ceased advertising on Musk’s platform. Recent reports suggest that the platform may face a potential loss of up to $75 million in advertising revenue by the end of the year.
Musk warned that if advertisers did not return, it could spell the end for the platform, vowing to document the situation in detail.
In essence, major American companies have resumed their advertising campaigns on Instagram after a brief hiatus on Musk’s platform, while a controversy surrounding advertising and platform ownership continues to unfold.
