X’s Advertising Rebound: Growing Advertisers, Uncertain Revenue
Elon Musk’s X, formerly known as Twitter, has seen a rise in new advertisers in recent months. High-profile brands like Apple are making a comeback. However, the company’s journey to recoup lost advertising revenue is proving to be complex.
X’s Advertising Landscape Post-Takeover
In January 2024, 46 out of the top 100 US spending advertisers on X were not active on the platform in 2022, according to Sensor Tower. This indicates that X is successfully attracting a new pool of advertisers. Despite this growth, the total advertising revenue remained below pre-takeover levels.
New Advertisers But Fewer Dollars
MediaRadar’s analysis of more than 2 million US users showed X’s US advertising revenue was approximately $1.4 billion in 2024, a 28% decline from nearly $2 billion in 2023. However, the number of advertisers on X increased by 15% year-over-year.
This rise in advertiser numbers can be attributed to new deals X has signed with adtech vendors like Magnite, Google, and PubMatic. While these partnerships bring in more advertisers, they often lead to lower ad prices and shared revenue with the vendors.
Influence of Political Factors
X’s advertising performance is closely tied to the political climate. Many advertisers were wary after Musk’s takeover, characterized by staff layoffs, relaxed moderation policies, and the return of banned accounts. Musk’s statements to advertisers to “go fuck yourself” further exacerbated these concerns.
However, the November election of President Donald Trump and Musk’s subsequent involvement in government might shift advertisers’ outlook. Some are now reconsidering their stance on X, viewing it as a hedge against political risk.
“We see more advertising money hedging against political risk,” said an anonymous top media buyer, highlighting the CEO’s increased involvement in media buying decisions.
Key Advertisers Returning
Apple, one of the largest technology companies, resumed advertising on X in February 2025, as reported by MacRumors. However, overall agency spending on X remained low in December 2024, with only one client spending, down from 13 in December 2023.
Guideline, an analytics firm, reported a significant uptick in US spending by major agencies on X since the election, showing a 123% increase in December and 42% growth in January. February spending is projected to be 25% higher year-over-year.
Antitrust Lawsuits Complicating Matters
X is also facing legal challenges, as it is suing 11 advertisers for allegedly conspiring to boycott the platform in violation of antitrust laws. This lawsuit adds another layer of complexity to the advertising landscape.
Conclusion
X is experiencing a mix of advertiser growth and persistent revenue challenges. While new brands are entering the platform, the overall revenue has yet to reach pre-takeover levels. The political environment, particularly under a Trump administration, and new adtech partnerships play significant roles in shaping this recovering scenario.
As X continues to navigate these factors, the future of its advertising revenue remains uncertain.
What do you think about X’s advertising rebound? Share your thoughts in the comments below.
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