Elon Musk’s social media platform, X, is on track to report its first year of advertising revenue growth since his acquisition in 2022, with U.S. ad revenue projected to reach $1.31 billion in 2025, a 17.5% increase from the previous year.
Global ad sales are expected to hit $2.26 billion, up 16.5%.
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Analysts attribute part of this growth to a resurgence of advertisers returning to the platform, driven by a combination of market dynamics and Musk’s growing influence within the Trump administration.
However, many advertisers are motivated by fear, viewing spending on X as necessary to avoid potential legal repercussions rather than a sign of confidence in the platform.
“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,” Jasmine Enberg, principal analyst at Emarketer, told Bloomberg.
Despite the projected growth, X’s ad revenue remains below pre-Musk levels, having reported $4.5 billion in 2021 as a public company.
The platform has also seen success in attracting small and medium-sized businesses, an area where it historically struggled.
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