Elon Musk’s Influence and Changing Advertiser Sentiments Drive X’s Resurgence
Elon Musk’s social media platform X is poised to experience its first year of advertising revenue growth since he acquired Twitter in 2022, marking a potential turnaround for the company amid shifting advertiser sentiment and Musk’s growing political ties.
A Positive Shift in Advertising Revenue
According to a report from Emarketer, X is projected to generate $1.31 billion in U.S. advertising sales in 2025, reflecting a 17.5% increase from the previous year. Global ad sales are also expected to climb to $2.26 billion, up 16.5%. This marks a significant milestone for the platform, which has struggled to maintain advertiser confidence since Musk’s takeover.
While this growth is a positive indicator, X’s business remains smaller than it was before Musk’s acquisition. In 2021, the platform—then operating as Twitter—reported $4.5 billion in ad revenue, its last full year as a public company.
Advertisers Return Amid Political and Legal Factors
Jasmine Enberg, principal analyst at Emarketer, told Bloomberg that some of the renewed ad spending stems from political considerations. “Some of the spending growth is really being driven by fear, as we’ve seen some of the big advertisers return in an effort to curry favor with the Trump administration,” she noted.
Legal pressure has also played a role. Some advertisers may be re-engaging with X following lawsuits filed by Musk against major brands such as Lego and Nestlé, accusing them of an advertising boycott campaign. This legal strategy, coupled with shifting industry norms around content regulation, has contributed to a reluctant return of some major brands.
Challenges in Ad Revenue Recovery
Despite this resurgence, X still faces reputational and operational challenges. Many advertisers fled the platform after Musk dismantled its content moderation teams, transforming it into a self-proclaimed “free speech” platform. This approach led to concerns over brand safety, with companies like IBM, Apple, and Disney pausing their spending after their ads appeared next to controversial and antisemitic content.
A particularly damaging incident occurred in 2023 when Musk replied to an antisemitic post, stating, “You have said the actual truth.” This prompted a wave of advertiser withdrawals and a potential $75 million in advertising losses, according to The New York Times.
The Road Ahead for X
While X’s projected revenue growth signals progress, the platform must navigate a delicate balance between maintaining its free speech ethos and ensuring a brand-safe environment for advertisers. Musk’s political connections and legal maneuvers have influenced the company’s advertising dynamics, but long-term stability will depend on whether X can rebuild trust with major brands and sustain its revenue trajectory.
As 2025 approaches, X’s ability to adapt and regain its pre-acquisition momentum will be closely watched by investors, advertisers, and social media industry leaders alike.
