In 2024, several major advertisers that previously left X/Twitter, including Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment, have cautiously returned to the platform, albeit with significantly diminished ad budgets. After pausing their campaigns in November 2023 due to concerns over their advertisements being displayed alongside antisemitic content and hate speech, these brands collectively spent less than $3.3 million from January to September 2024. This figure represents a drastic 98 percent decline compared to the hefty $170 million spent during the same timeframe in the previous year, highlighting the ongoing challenges X faces in regaining advertiser confidence.
The initial withdrawal by prominent advertisers was primarily influenced by brand safety concerns. Nevertheless, with Elon Musk’s political connections, particularly to President-elect Donald Trump, some brands have begun to reconsider their stance on ad spending on X. Max Willens, a senior analyst at Emarketer, noted that even a minor return to spending could be perceived as a strategic business decision. Musk’s aggressive demeanor towards advertisers has also made headlines; he famously told them to “go fuck yourself” during a summit when confronted about the damage caused by a boycott led by leftist groups. This confrontation showcased Musk’s contentious relationship with advertisers, further complicating the platform’s efforts to win them back.
Adding to the challenges, X/Twitter has launched a lawsuit against Media Matters, accusing the organization of orchestrating a smear campaign against Musk and the platform through manipulated data. Despite these legal maneuvers and attempted damage control strategies, such as a visit to Israel, major advertisers remain hesitant to increase their spending. Among the few returning advertisers, Comcast spent nearly $1.5 million, followed closely by Warner Bros. Discovery at $1.1 million, Disney with under $550,000, Lionsgate at less than $230,000, and IBM at just under $2,000. Notably, tech giant Apple has maintained its hiatus on X advertisements since it paused spending in 2023.
The overall advertising revenue for X has experienced a significant decline regardless of the return of some advertisers. As reported, the platform generated $1.8 billion in ad revenue up to Q3 2024, a 29 percent decrease from the $2.5 billion recorded during the same period in 2023. This sharp decline underscores X’s difficulties in establishing the effectiveness of its advertising formats, which is leading marketers to allocate more substantial budgets to rival platforms like Meta and Google. Despite these challenges, X claims to be working on enhancing its ad products, which they hope will attract more advertisers willing to invest.
Interestingly, while major advertisers remain cautious, there has been a noticeable shift towards a new category of advertisers on the platform. Challenger brands like Karma Shopping, Canles Shoes, and Kueez Entertainment have emerged, each spending over $12 million this year and collectively totaling $68 million. This trend indicates that X may be evolving into a platform catering to long-tail advertisers seeking visibility in a less saturated media environment. Such a shift could reposition X as a more appealing platform for newer brands looking to build an audience away from the intense competition found on other major advertising channels.
Despite the cautious re-engagement of certain advertisers, concerns regarding brand safety on X persist. A global survey conducted by Kantar revealed that only four percent of marketers trust X for brand safety, in stark contrast to the 39 percent trust level for Google Ads. Furthermore, with the challenging landscape ahead, 26 percent of marketers are planning to reduce their spending on X in 2025. These statistics paint a concerning picture for X’s advertising future as it grapples with how to regain credibility and trust among a broader spectrum of advertisers while navigating ongoing reputational challenges.