It has been six months since Linda Yaccarino has taken the helm at X, the social media app formerly known as Twitter.

The company could lose up to $75 million in ad revenue following owner Elon Musk’s endorsement of antisemitic comments, according to The New York Times. Mark Douglas, MNTN CEO joins Yahoo Finance Live to weigh in on what loss of ad revenue could mean for the social media app—and the overall terrain of social media advertising for brands.

Douglas notes that the big advertising dollars are not going to X, stating that “the crumbs that are leftover” generally are what is allocated to X. Douglas also points out that the "performance advertisers can't count on X, because the platform doesn't have the features that Google and Meta have."

Douglas does not expect these advertisers to return to the platform and suggests the best way for X to pivot is to “attract users that performance advertisers want.”

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

- Well, today marks six months since Linda Yaccarino stepped in as CEO of X, formerly known as Twitter. The NBC Universal alum was brought in with the goal of restoring X's relationship with advertisers, a goal owner Elon Musk has made increasingly difficult to achieve.

According to "The New York Times," dozens of brands have paused campaigns on X after Musk endorsed anti-Semitic comments earlier this month. The company is estimated to lose as much as $75 million by year end as a result.

With more, let's bring in Mark Douglas, CEO of advertising software company Mountain. Good to talk to you today. 75 million is where "The New York Times" puts it. How are you assessing the fallout here for X?

MARK DOUGLAS: Well, I think the way to look at it is that, first, we're talking about large brand advertisers. They don't use X as a primary platform. So they see X as kind of, quite frankly the crumbs that are left over after they spend their big TV budgets. So that's kind of the first big problem they have. And quite frankly, I mean, in some ways, Elon is right, he shouldn't be dependent on those advertisers.

The advertisers that consistently spend big ad dollars spend them on Google and Meta, and X is just-- those are big performance advertisers. Direct response advertisers, they just don't see X as a primary platform either. So they have two big problems, the big brand advertisers, they can't count on, and the performance advertisers can't count on X because the platform doesn't have the features that Google and Meta has. So it's a real issue.

- So those major advertisers that left, what's the reason for them to come back?

MARK DOUGLAS: I don't think there's any.

- Are they going to come back?

MARK DOUGLAS: No, I don't think so. I don't think there's any reason for kind of like a big CPG brand to be on the X in the first place. I think what they're going to have to do is to attract users that performance advertisers want. You can't take a product like X, a social media product, and try to sell it to big advertisers that traditionally use television. It's just a fundamental mismatch. And I don't think those advertisers--

Let's put it this way. Let me change it slightly. If they were driving measurable revenue from X, they wouldn't cut those budgets. But because they are not, those budgets were easy to cut. And so they're not going to come back to X, and X is going to have to find a new type of advertiser to grow their advertising revenue, a whole new revenue source.