Elon Musk’s X Promoting Spending Knowledge Evaluation Exhibits Combined Restoration

• X is attracting new advertisers, although its advert income restoration is unsure, third-party information suggests.
• X’s advert income dropped considerably after Musk’s 2022 takeover.
• Some advertisers are cautiously plotting a comeback to X.

Elon Musk’s X has efficiently courted a brand new set of advertisers in latest months, and a few big-name manufacturers, equivalent to Apple, are returning.

Does that imply it is seeing an promoting rebound? Nicely, it is sophisticated.

A Enterprise Insider evaluation of 4 unbiased information sources suggests X’s pool of advertisers is rising, nevertheless it’s removed from recouping the income misplaced within the advert exodus following Musk’s 2022 takeover.

X did not reply to a request for remark. X is a non-public firm and would not publicly report advert income information.

In response to the market intelligence agency Sensor Tower, 46 of the 100 top-spending US advertisers on X in January this 12 months weren’t spending on the platform in 2022, suggesting it has cultivated a brand new base of advertisers. (Sensor Tower says its estimates are based mostly on proprietary panel information and information science fashions and ought to be used for directional development evaluation.)

President Donald Trump’s election victory and Musk’s political ascension might have drawn new advertisers to X. It is notable, nevertheless, that a big chunk of the highest 100 have been spending on the platform all through 2024 — even earlier than the election. Chinese language e-commerce big Temu was the highest advertiser final 12 months, accounting for 3% of whole US spend on the platform, in line with Sensor Tower’s estimates. Temu did not reply to a request for remark.

Right here have been the highest 10 spenders in January 2025, per Sensor Tower:

1. Temu
2. Robinhood
3. Photo voltaic Heavy
4. The NFL
5. DraftKings
6. Shein
7. Restaurant Manufacturers Worldwide
8. Amazon
9. Dell
10. Purple Deer Video games

Sensor Tower information estimated that these advertisers spent much less on X total in January 2025 in comparison with the earlier set of prime advertisers in January 2024.

Extra advertisers, however fewer advert {dollars}

Knowledge from the analysis agency MediaRadar, which analyzed a panel of greater than 2 million US customers, confirmed an identical development. It estimated that X’s US promoting income was $1.4 billion in 2024, down 28% from the almost $2 billion spent on the platform in 2023.

Whereas revenues declined, the variety of corporations promoting on X in 2024 elevated 15% year-over-year, in line with MediaRadar.

This improve may stem from a string of latest offers X signed with adtech distributors to drive advertiser demand. Advertisements offered this fashion are likely to go for decrease costs than advertisements offered instantly by gross sales groups, and X would want to share a few of this income with these distributors. X this month signed a cope with the adtech firm Magnite, as BI first reported. X has additionally completed offers with Google and PubMatic.

Musk earlier this month reposted a screenshot of a Wall Avenue Journal article saying that X’s 2024 income was down versus 2021, the final full 12 months earlier than it went personal, nevertheless it had improved profitability in that point on an adjusted EBITDA foundation. Musk did not affirm the numbers however posted: “It is virtually like I am good with cash 😂.” An total X income determine would additionally embody revenue from its information licensing and subscription companies, along with promoting.

Some advertisers are cautiously plotting a return to X

Many advertisers have been cautious about spending on X after Musk’s takeover of Twitter in 2022.

The corporate laid off a lot of its staffers, loosened moderation and account verification guidelines, and introduced again some banned accounts of controversial figures. Musk famously informed advertisers that had stopped spending on the platform to “go fuck your self.” X can also be suing 11 advertisers, alleging they collectively conspired to boycott the platform in contravention of antitrust legal guidelines.

Regardless of these considerations, some trade insiders who spoke with BI posited X may gain advantage from Trump’s November election win and Musk’s more and more influential position in his administration. They mentioned some advertisers are considering whether or not spending on X would possibly make sense this 12 months.

“We see extra promoting cash hedging towards political danger,” mentioned a prime media purchaser, who requested for anonymity to debate delicate consumer spending selections. Their identification is understood to BI.

“Usually, the CEO doesn’t become involved in media shopping for selections; the CMO is accountable. Now, on this political atmosphere, the CEO is getting concerned,” the media purchaser added.

Ruben Schreurs, CEO of the advertising consultancy Ebiquity, which works with 70 of the highest 100 world advertisers, mentioned it’s seeing remoted circumstances of advertisers coming again to the platform, “however as of but, no indicators of a mass return.”

Apple, for instance, which stopped spending on X in 2023, purchased advertisements on X once more this month, MacRumors earlier reported, and BI confirmed. Apple did not instantly reply to a request for remark.

Nonetheless, Ebiquity’s evaluation of consumer spending confirmed that simply one in every of its purchasers was spending on X in December 2024, down from 13 purchasers in December 2023.

Nonetheless, no less than one information supply instructed X has seen an uplift because the election. That was Guideline, an analytics agency that aggregates information from the world’s largest media shopping for companies.

Its information confirmed there was a 123% uplift in US spending on X from these main companies year-over-year in December — the primary full month of knowledge after the election — and an additional 42% year-over-year progress in January. This got here from a low base, nevertheless, as X had skilled two years of constant year-on-year advert spend decreases within the 60% to 80% vary, per Guideline’s information.

It additionally seems like spending in February from these companies will likely be up 25% year-over-year, although this estimate from Guideline relies on ahead bookings of early advertiser commitments and remains to be topic to vary.