Insider Intelligence forecasts X’s global ad revenue will drop to $1.81 billion in 2024, a sharp fall from $4.41 billion in 2022 when Musk took over.
Success in selling products and for entertainment brands
While X’s latest brand safety controversies have been the final push for some brands, others are sticking with the platform.
An ecommerce client of the first media buyer is still on X after finding the platform particularly performative in selling products to men. The customer base is more female-skewing when the brand prioritizes other platforms.
“There is a very favorable CPM, cost arbitrage environment to exploit,” the first buyer said. “There’s a contrarian take [that says] ‘give me the garbage inventory.’ That remains an underpinning of a strategic conversion.”
X still has unduplicated reach compared to some platforms, and is still especially salient for pop culture conversations and entertainment brands, the buyer added.
Amazon spend on X increased by more than 84% in October 2023 compared to October of last year, according to Sensor Tower data. Adweek has reached out to Amazon for comment.
But most brands that have resumed advertising on the platform are spending much less than they did last year, the firm found. For example, Mondelez spent 28% more on X in October than it did in October 2022, according to Sensor Tower. Adweek has reached out to Mondelez for comment.
Other brands say X was never a performance driver.
A media buyer from a large restaurant brand said the platform was always the worst-performing social channel, generating the lowest return on ad spend (though still a positive figure). The brand has stopped spending on ads for over a year, though still posts via brand accounts. X figures less prominently in organic strategy, the buyer said.
“We used to amplify best performing organic via paid,” the brand media buyer said. “Without that, the reach is minimal.”
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