Elon Musk’s Social Media Company, X, Sees Return of Advertisers, Focuses on Small Businesses
In a recent series of all-hands meetings at Elon Musk’s social media company, X, executives revealed that 65 percent of advertisers had returned to the platform since January. This news comes as the company continues to rebuild its advertising business under the leadership of Linda Yaccarino, who took over as CEO a year ago.
Despite the return of advertisers, executives acknowledged that X still faces challenges in increasing revenue. The company, which was acquired by Musk for $44 billion in 2022, has seen a shift in its advertiser base, with smaller companies now making up the bulk of its revenue.
Since Musk took over X, he has made significant changes to the platform, including cutting 75 percent of staff, restoring banned accounts, and allowing more speech without consequences. However, the company has also faced criticism for the surge in hate speech and violent content on the platform.
Yaccarino remains optimistic about the future of X, highlighting the increase in advertising by small and medium-sized businesses on the platform. She and Musk are expected to continue making their case to brands at the upcoming Cannes Lions festival.
While the increase in small business advertisers is a positive development, analysts caution that X may struggle to attract larger Fortune 500 companies with significant ad budgets. Jasmine Enberg, an analyst with Emarketer, notes that big brands are more risk-averse and may have concerns about advertising on the platform.
Despite the challenges, Yaccarino is focused on transforming X into a “video-first” platform that competes with YouTube and TikTok. The company is working to build a more resilient business model that is less reliant on top brands, in an effort to protect against volatility and attract a wider range of advertisers.
As X continues to navigate its post-Musk takeover era, the company faces both opportunities and challenges in rebuilding its advertising business and attracting a diverse range of advertisers.
