蘑菇AV

The news: X (formerly Twitter) is poised for its first year of ad sales growth since Elon Musk took over the platform in 2022, per our forecast. US sales are expected to be up 17.5% this year, reaching $1.31 billion. Global sales will climb 16.5% to $2.26 billion. Revenues are expected to continue growing鈥攖hough at a slower rate鈥攊n upcoming years.

The news: xAI acquired X (formerly Twitter), giving xAI access to an invaluable collection of user data for product development and improvement. xAI CEO Elon Musk said that the all-stock purchase valued X at $45 billion鈥攎inus $12 billion in debt鈥攁nd that the companies will combine their data, models, compute, distribution, and talent.

X still looks and feels much more like Twitter than the 鈥渆verything app鈥� Musk promised, but the company has launched a slew of new features. Many ad products show promise, but X needs to iron out some issues. X is diversifying its consumer surfaces. It鈥檚 leaning into new features for its core users.

Threads has staying power, but Meta must ensure that the novelty and intrigue don鈥檛 wear off before the network effects take hold. It鈥檚 already a formidable rival to Twitter, but it鈥檚 not a replacement, and Threads must find its identity outside of Instagram to become a viable platform for users and advertisers.

The news: Engagement rates on X (formerly Twitter) fluctuated dramatically throughout 2024, per our Industry KPI data from Dash Social. The significant spikes and declines show that X is still a go-to platform for users looking for discussion around major events鈥攂ut also that it struggles to keep users鈥� attention outside major news events.

Stripe partners with companies like X (formerly Twitter) and Clubhouse to help them build payment solutions for creators on their platforms. And in October, Amazon acquired a minority stake in Spotter, a startup that provides capital, services, and software to creators.

Musk gave advertisers a reason to leave Twitter. He exacerbated long-standing issues and created new ones. Six months into Musk-era Twitter, most brands aren鈥檛 ready to resume spending, largely because they don鈥檛 trust the man in charge.

Q4 was another turbulent quarter for social media: Support for a US ban on TikTok grew; Elon Musk announced he would step down from Twitter once he finds a replacement; and Meta suffered its first-ever major round of layoffs. But there were still bright spots for marketers.

The news: Threads, the Meta-owned rival to X (formerly Twitter), is testing a feature that allows users to display interests on their profiles. 鈥淚nterests鈥� gives users the ability to find active conversations about the topics they鈥檙e drawn to, driving engaging discussions. The feature is currently mobile-only and available to a select number of users.

Our take: Even before Musk鈥檚 takeover, Twitter/X had significant problems increasing its advertising revenues and standing out in the crowded social media field. Ad revenues have fallen further under Musk鈥檚 ownership, but political changes are giving X a boost.

The news: X (formerly Twitter) launched two new automated ad creation features with the release of its Grok 3 AI model to give advertisers more ways to optimize campaigns on the platform. 鈥淧refill with Grok,鈥� now available to select advertisers, allows brands to create AI-generated ad copy, imagery, and calls to action with just a URL.

X (formerly Twitter). YouGov. YouTube.

X shifted to a user-driven content moderation policy soon after businessman Elon Musk completed his acquisition of the platform in October 2022 (when it was still called Twitter). Within months, he disbanded Twitter鈥檚 Trust and Safety Council, gutted the company鈥檚 internal moderators, and launched the Community Notes moderation program (an extension of an earlier pilot called Birdwatch).

The news: X (formerly Twitter) is planning its first marketing campaign since Elon Musk took over in 2022, including promoting its payment platform, X Money, which aims to challenge contenders like Venmo and Cash App. Musk鈥檚 campaign could contribute to a further resurgence of brands and advertisers.

Linda Yaccarino is exactly the type of leader Twitter needs to start rebuilding the company鈥檚 ad business. But will Yaccarino鈥檚 vast experience and strong ties to the advertiser community be enough to convince advertisers to return? And can she avoid clashing with the mercurial Elon Musk?

X doesn鈥檛 mark the spot: Once the go-to platform for Super Bowl chatter, X (formerly Twitter) is no longer the automatic second-screen destination. Brand strategies are more fragmented, with marketers spreading efforts across Instagram, TikTok, Reddit, and YouTube Shorts instead of relying on a single platform, per Digiday.