X to Report First Growth in Ad Revenue Since Musk’s Acquisition
X, the social media giant owned by Elon Musk, will achieve its first annual ad revenue growth since the billionaire bought the company for $44 billion in 2022. According to new data from research firm eMarketer, this marks a significant turnaround as brands slowly make their way back to the platform. With competition from rivals and a turbulent economic backdrop, X’s performance is piquing industry interest.
Brands Return to X Amid Musk’s Influence
Following substantial changes in management and direction, X is finally regaining the attention of advertisers. Notably, Musk’s growing influence in U.S. government affairs, including his role in the Department of Government Efficiency, may have incentivised advertisers to return to X despite initial hesitations. The platform is projected to generate $1.31 billion in US advertising sales in 2025, an increase of 17.5% as businesses adjust to both economic conditions and Musk’s leadership.
One of the key elements in X’s resurgence is its improved ability to attract small- and medium-sized businesses. Historically, this demographic was elusive for X, but under Musk’s leadership, strategies seem to be paying off.
Additionally, fear may be a driving force. Jasmine Enberg, a principal analyst at eMarketer, explained that some businesses may view advertising on X as essential to avoid potential legal or financial complications.
X’s Ad Business Growth in Numbers
Data from eMarketer predicts a steady rise in X’s advertising revenue. By 2025, U.S. ad sales are projected to increase by 17.5%, reaching $1.31 billion, while global ad revenues are expected to grow by 16.5%, hitting $2.26 billion. This anticipated rebound marks a new era for X, though it’s worth noting that the ad revenue will still be smaller than its peak as a publicly traded company.
For context, prior to Musk’s acquisition, X reported ad revenues of $4.51 billion in 2021. It remains a private company under Musk’s leadership and does not disclose financial data publicly, but the projected increases signal a slow yet steady recovery.
Competition in the Advertising Arena
Despite its growth, X remains in a tough battle within the competitive digital ad market. Platforms like Meta-owned Instagram and viral short-video app TikTok continue to dominate in attracting advertisers. Before Musk, people always considered Twitter an advertising also-ran, but his ambitious influence may change its trajectory.
The market is also facing external pressures. U.S. tariffs and economic uncertainty are shaping ad spend behaviours, and major brokerages like MoffettNathanson have trimmed their advertising growth forecasts, citing heightened unpredictability. These dynamics highlight both the challenges and opportunities X must contend with.
Reshaping X’s Future Advertising Strategy
While projected growth is promising, the company’s ad revenue remains far from its historical highs. To continue its upward trajectory, X will likely need sustained efforts in innovation, partnerships, and user engagement strategies.
By focusing on smaller businesses, refining its advertising tools, and leveraging Musk’s network and influence, the company could strengthen its foothold in the advertising sector. It remains unclear if these measures will enable X to fully reclaim its dominance from before 2022.
X’s projected growth in advertising revenue represents a key milestone in its post-acquisition era. Brands are returning, and ad sales are trending upwards, positioning the platform to regain momentum, though challenges remain.
Source
Reuters – X to report first annual ad revenue growth
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