Elon Musk faces significant challenges in revitalizing X’s revenue generation as the platform dealt with a mass exodus of advertisers in late 2022, attributed in part to the presence of pro-Nazi content. In a controversial statement, Musk told advertisers to “go elsewhere” amid growing concerns about the platform’s direction.
Shortly after this backlash, Musk revealed that X’s revenue had plummeted by 60 percent since his acquisition.
X introduces a new app for video streaming
Looking ahead, 2025 may bring further difficulties for X, as a report from market research firm Kantar indicates that 26 percent of marketers plan to cut their advertising budgets on Musk’s platform next year.
Kantar identified this trend as the “largest recorded reduction” in spending among major global advertising platforms.
“Advertisers have increasingly shifted their marketing budgets away from X over the past few years,” stated Kantar’s Global Thought Leadership Director. “The rapid acceleration of this trend in the past year suggests that a turnaround is unlikely in the near future.”
Further Advertiser Losses Expected for X
Kantar also noted that marketers’ trust in advertising on X was already at a “historically low” level prior to Musk’s takeover. The situation has only worsened since then.
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Trust in the platform, formerly known as Twitter, has decreased from 22 percent in 2022 to just 12 percent in 2024, according to the research.
“X has undergone rapid changes that make it unpredictable day-to-day, impacting brand safety,” the Director commented.
Kantar’s findings reveal that only 4 percent of advertisers perceive X as a safe environment for their brands. In comparison, Google leads the social media landscape with a brand safety rating of 39 percent. X scores low, ranking outside the global top ten for trust and innovative advertising, while TikTok is recognized as the most innovative platform and YouTube leads in trust metrics.
The disparity between X and other platforms is highlighted in Kantar’s report, which features visual representations of these findings.
Source: Kantar
Under Musk’s leadership, a shift in strategy appears unlikely. Recently, he drew criticism for endorsing a video that included a guest expressing admiration for Hitler.
Musk noted the video was “worth watching” before promptly deleting the post.
