The World Federation of Advertisers (WFA) is shutting down its Global Alliance for Responsible Media (GARM) initiative following the antitrust lawsuit filed earlier this week by X, formerly known as Twitter.
GARM was founded in 2019 as part of WFA to develop and promote brand safety guidelines for online advertisers to ensure their ads don’t appear alongside harmful or controversial content. In a recent lawsuit, X recently alleged that GARM and several major brands, which are members of the organization, conspired to boycott platforms, such as X, that don’t follow GARM’s brand safety standards. Unilever PLC, Unilever United States, Mars Incorporated, CVS Health Corporation, and Ørsted A/S are some of the brands mentioned in the filing.
X has lost billions in ad dollars since Elon Musk took over the platform in 2022, with brands stepping away for various reasons, including Musk’s own anti-semitic comments, a decline in ad performance and the increase of misinformation and hate speech on the platform. According to Axios, X is projected to make $2 billion in ad revenue this year, a decrease from $4.5 billion in 2021.
Devon MacDonald, president of Cairns Oneil, says that early into the Musk ownership of X, his agency recognized that changes to the brand safety controls and feed algorithm would be detrimental to clients. As a result, his team advised brands not to use X as a paid channel, but to still consider it as a owned property to provide brand updates and interact with consumers.
“We see a continued proliferation of hateful speech and spam or bot-like commenting or traffic clogging discussions being a threat to brands,” says MacDonald. “Our clients agree and we’ve had further discussions with a number of them this week and have continued our guidance to not use X as a paid channel.
“The continued degradation of discussion, and the risk of Musk’s own brand are increasing. The recent identification of X amplifying content fueling the U.K. immigration riots are a recent example of usage on the platform that we are recommending brands to avoid.”
Research is also showing that usage of X by Canadians is declining. The latest Vividata social media report slots X at number six in popularity for daily visitors under 35, behind Snapchat, Instagram, TikTok, LinkedIn and Reddit. The MTM report posts similar findings, particularly with women where it drops down to ninth in platform preferences.
Michael Dobson, Involved Media’s global chief digital officer, says that the agency has also observed significant concerns around brand safety.
“The lawsuit against GARM, WFA, and major brands has certainly stirred the industry, especially with the impact it may have on brand safety and accountability initiatives,” says Dobson. “In the U.S. and Canada, there’s a mix of caution and concern among media agencies and clients. Many are closely monitoring the situation, as the outcome could influence broader industry practices and the level of trust in digital platforms. This moment could prove pivotal, shaping how brands navigate their media strategies in the face of evolving standards and potential legal challenges.”
