Fear of Elon Musk Driving Advertisers to Increase Spending on X

Fear surrounding Elon Musk is pushing advertisers to allocate more budget towards X, as per an analyst's observation. X is projected to rake in $1.3 billion in ad revenue in the US this year, partly fueled by apprehensions linked to Elon Musk. Nonetheless, the sustainability of this growth remains uncertain.

Scrutiny from Democratic Senators

X's advertising strategies have come under scrutiny from Democratic senators. Despite the recent uptick, X's ad revenue still falls below pre-Musk acquisition levels. In 2022, the company recorded $2.4 billion in US ad revenue. Following Musk's alterations, which included layoffs, relaxed moderation policies, adjustments to account verification protocols, and the reinstatement of banned accounts, X witnessed a downturn in its ad business.

Legal Action and Congressional Attention

The company even took legal action against multiple advertisers, accusing them of colluding to boycott the platform. X's sales practices have piqued the interest of Democratic senators, prompting calls for further investigations. Reports surfaced that X's CEO and a top executive urged IPG to increase its advertising expenditure on X. This move raised concerns about the potential influence of the Trump administration on the proposed $13 billion merger between IPG and Omnicom.

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By: insider@insider.com (Geoff Weiss,Lara O’Reilly)
Title: Fear of Elon Musk Driving Advertisers to Increase Spending on X
Sourced From: www.businessinsider.com/elon-musk-x-advertising-revenue-on-upswing-analys-estimates-2025-3
Published Date: Thu, 27 Mar 2025 12:25:48 +0000