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Brands spend nominal sums on X ads to keep Elon Musk happy

Following Elon Musk's $44 billion acquisition of Twitter in 2022, now known as X, the platform's global sales of $4.1 billion have not yet been recovered, despite efforts to regain advertiser confidence.
Musk's takeover and subsequent actions, including publicly supporting Donald Trump and launching a federal antitrust lawsuit against the Global Alliance for Responsible Media accusing them of coordinating an illegal boycott under the guise of brand safety, created an uneasy environment for advertisers.
Despite ongoing legal tensions and concerns, WPP, Omnicom, Interpublic Group, and Publicis have either agreed to deals or are in talks to set annual spending targets with X through upfront deals, and companies like Unilever and Hulu have cautiously returned to the platform.
While X's revenue is projected to increase to $2.3 billion in 2025 from $1.9 billion the previous year, US ad spending on X decreased by 2% in the first two months of 2025, and American Express's ad spend is down approximately 80% compared to the first quarter of 2022, with Lou Paskalis noting companies are spending just enough to "stay off the naughty list".
To counter the legacy advertisers holding back, X is courting new clients, including pro-Trump merchandise outlets, energy drink brands, and telehealth companies, while expanding its lawsuit against several groups, including Shell, Nestlé, Pinterest and Lego, as part of a broader campaign to hold advertisers accountable for what Musk describes as politically motivated boycotts.

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Ars Technica

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technewstube.com

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Big brands are spending small sums on X to stay out of Musk’s crosshairs

“It’s whatever amount is enough to stay off the naughty list,” says ad executive.

2 days ago·United States

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Benzinga

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Major Brands Resume Advertising On Musk's X Amid Legal Pressure

Major brands are making a cautious return to advertising on Elon Musk‘s social media platform X. What Happened: According to multiple marketing executives, companies are feeling the pressure to spend nominal amounts on advertising on X. This move comes in the wake of Musk’s influential role in the Trump administration and his legal action against entities that stopped advertising following his $44bn acquisition of the platform in 2022. Recently,…

3 days ago·New York, United States

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