In recent months, Elon Musk's social media platform, X, has witnessed a resurgence in advertiser interest. However, the path to full recovery remains uncertain. After Musk’s acquisition of the platform in 2022, ad revenue plummeted due to concerns over content moderation and management changes. Despite attracting new advertisers and welcoming back some former ones, including major brands like Apple, the overall financial picture is complex. Third-party data suggests that while the number of advertisers is increasing, total ad spend remains lower than pre-acquisition levels. This article explores the nuanced situation surrounding X’s advertising landscape.

Ad Revenue Trends and Market Dynamics on X

In the wake of Elon Musk’s acquisition of X in 2022, the platform experienced significant upheaval, leading many advertisers to pull their spending. Fast forward to early 2025, and X is now seeing a cautious return of advertisers. According to market intelligence firm Sensor Tower, 46 of the top 100 US advertisers on X in January 2025 were not present in 2022, indicating a shift in advertiser composition. Chinese e-commerce giant Temu emerged as the top spender, accounting for 3% of total US ad spend on the platform.

However, despite these gains, overall ad revenue has not fully recovered. Data from MediaRadar shows that X’s US advertising revenue was $1.4 billion in 2024, a 28% drop from the nearly $2 billion spent in 2023. While the number of companies advertising on X increased by 15% year-over-year, the average ad spend per company decreased. This trend could be attributed to X’s new partnerships with adtech vendors, which may offer lower-priced ads but also require revenue sharing.

Apple, which halted ad spending on X in 2023, resumed its activities this month, joining other notable brands like Amazon and Dell. Yet, according to marketing consultancy Ebiquity, only one of its top clients was active on X in December 2024, down from 13 in December 2023. The analytics firm Guideline reported a 123% uplift in US spending on X from major agencies in December 2024, following two years of consistent declines. However, this growth comes from a low base, and February estimates suggest a modest 25% increase year-over-year.

The political environment, particularly with President Trump’s victory and Musk’s growing influence, may have influenced some advertisers’ decisions. Some insiders noted an uptick in ad spending as companies hedge against political risks. Nonetheless, the cautious approach remains prevalent, with many advertisers still wary of X’s evolving policies and leadership.

From a journalist's perspective, this scenario highlights the delicate balance between innovation and stability in the digital advertising world. While X’s ability to attract new advertisers is commendable, the platform must address lingering concerns about governance and content moderation to ensure sustainable growth. The future of X’s advertising business will depend on its capacity to rebuild trust and demonstrate long-term viability in a competitive market.