Rather than completely pulling their presence from the platform, brands will be more likely to reduce the scope of their media strategy to either just organic content or investing some dollar amount on selective ad products, such as in-stream video, to have some control over brand risk.
“That is much less trollable versus a promoted tweet,” Morgenstern added.
Ad spend shifts to TikTok, Snap, Reddit and Meta
At VaynerMedia, X traditionally commanded up to 25% of digital advertising spending during the Super Bowl. For larger brands, this often amounted to figures in the seven-figure range. However, brands are now reallocating their ad budgets to platforms such as TikTok, Snap, Reddit and Meta.
“The reality for Fortune 100 brands is that brand risk, even for three impressions, is just not worth it,” said Morgenstern.
Similarly, Pereira O’Dell is advising clients to explore alternatives beyond X, such as TikTok and Instagram.
“It’s where most of the post-Super Bowl marketing plans and promotions spots are going to happen,” said Sawhney. “Our audiences have also left X or don’t engage as much on the platform as they did in the past. There is a drop in effectiveness, and it’s not serving the purpose that it used to for campaign reach.”
Even as far back as last year, there was a noticeable decline in the enthusiasm to renew deals with X for 2023, despite there being fewer downsides at the time, said Morgenstern.
“Any kind of upfront deals or annual sponsorships, as soon as those are expired and those contracts are no longer in place, I wouldn’t expect those to be renewed,” said Sawhney.
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