Elon Musk's X (Twitter) Shows First Annual Ad Revenue Growth

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Ever since Elon Musk’s acquisition of Twitter in 2022, the platform has faced several ups and downs. Employee layoffs, advertiser exodus, and Musk’s controversial decisions raised questions over X’s future. But recent data has shown that X has recorded annual ad revenue growth for the first time. How did this change come about? Let’s understand in depth. By the end of 2024, X’s ad revenue is projected to grow 17.5% to reach $1.31 billion (USA) and $2.26 billion (global).

Advertisers Return

Big companies, which had stopped advertising on X, are now slowly coming back. X’s new ad strategies and AI-based targeting system attracted brands back.Elon Musk’s Twitter Acquisition and Its Impact Elon Musk bought Twitter in October 2022 for $44 billion. After this acquisition, he made many changes, which proved to be both positive and negative for the platform.

The story of Twitter becoming X

Elon Musk removed the Twitter branding and changed it to X. He said that X will not remain just a social media platform but will become an “everything app” that will include payment, video, subscription, and AI features. This change left some users and advertisers confused, which affected brand loyalty.

Why did the ad revenue drop initially?

Some of Elon Musk’s decisions led to X losing major advertisers. Some major reasons: Change in moderation policy – Many controversial accounts were restored. Blue tick (X Premium) was made paid – This created confusion among users. Elon Musk’s tweets and public statements – forced some advertisers to distance themselves from X

X’s struggle after acquisition: Why did ad revenue drop?

Soon after Musk bought Twitter, the company lost the trust of advertisers. Musk’s “free speech” policy, changes to the blue tick system, and lax content moderation made brands worried. In the first quarter of 2023, ad revenue fell by 40%.

Main reasons: Controversial tweets and changes in moderation policies. Reducing ad budgets by big brands (such as Coca-Cola, Apple) Greater reliance on new subscription models (Twitter Blue).

Signs of growth: When and how did the trend change?

According to Q1 2024 data, X’s ad revenue reached $2.5 billion, up 12% from the previous year. This growth is mainly driven by the following factors. AI-based ad targeting: Musk gave advertisers AI tools on the lines of Google and Meta. Focus on small business: Low-cost ad packages for local and small businesses. Video content boom: X’s “Spaces” and live streaming compete with YouTube and TikTok.

Elon Musk’s strategies: What worked?

Musk dreamed of making X not just a social media platform, but a “super app”. To achieve this, he took the following steps: Incentives for content creators: A portion of ad revenue started going to creators. Premium features: Blue tick subscriptions, ad-free experience, and longer video uploads. Payment system: Introduced in-app transactions through X Payments.

Expert opinion: Is this growth sustainable?

Financial analysts and tech experts consider this growth a “positive sign” but also give warnings:
According to Gartner: “X still has to compete with Meta and Google.” Marketing expert Priya Sharma: “Small business ads are a temporary solution. It is important to earn the trust of big brands.”

Way of the future: What can X do?

Global expansion: Linguistic localization in markets like India, Brazil. E-commerce integration: Introducing product tagging and shopping tabs. AR/VR technology: X’s entry into the Metaverse. Elon Musk proved that innovation and risk-taking can help companies overcome tough times. However, X must be prepared for the long haul.

CTA (Call to Action): “Do you think X will be able to overtake Meta and Google in the future? Let us know in the comments!”