In a bid to reassure ad partners of its commitment to brand safety, X has recently rejoined the World Federation of Advertisers’ ‘Global Alliance for Responsible Media’ (GARM). This move comes after X drifted away from GARM following Elon Musk’s takeover, which led to significant changes within the company. The reinstatement of X’s relationship with GARM demonstrates the platform’s renewed dedication to addressing harmful content on digital media platforms and ensuring responsible advertising practices.
Despite its efforts to reestablish brand safety credentials, X has been facing challenges in convincing ad partners to return to the platform. The decline in ad revenue by approximately 50% since Musk’s acquisition reflects the hesitance of brands to invest in advertising on X. One of the primary concerns for advertisers is the perception that Musk’s approach to content moderation has allowed offensive and inappropriate content to proliferate on the platform, posing a risk of negative brand association.
Third-party reports have also indicated that X is becoming a breeding ground for hate speech and conspiracy theories, further deterring advertisers from allocating ad spend on the platform. Additionally, X’s user base, although substantial with 250 million daily active users, falls short in comparison to other major social media platforms like Instagram, YouTube, Facebook, TikTok, and Snapchat. This limited reach, combined with stagnation in user growth since Musk’s takeover, makes X a less appealing choice for brands seeking to reach a wider audience.
The lack of resonance with a broader audience under Musk’s leadership raises concerns about X’s ability to attract and retain users. Musk’s amplification of conspiracy theories and controversial opinions on political issues further adds to the platform’s association risks. While Musk aimed to double X’s daily active users by 2025 and 2028, the stagnant growth indicates challenges in achieving these targets, thus impacting X’s appeal to potential ad partners.
To overcome these challenges, X must focus on driving growth and expanding its user base. Musk’s vision for X to become too big to ignore hinges on achieving substantial user growth, which would shift the balance of power in favor of the platform. Initiatives such as X Payments and xAI’s Grok chatbot could present opportunities for growth, albeit not at the projected rates. Realigning with ad partners through a combination of growth initiatives and brand safety measures, including participation in frameworks like GARM, will be crucial for X to maximize its ad revenue potential.
X faces an uphill battle in reestablishing its brand safety credentials and attracting ad partners back to the platform. While partnerships like rejoining GARM are steps in the right direction, X must address challenges related to offensive content, limited audience reach, and stagnant growth to revitalize its ad business. By focusing on growth initiatives, improving audience resonance, and strengthening brand safety measures, X can pave the way for a more sustainable and appealing advertising platform in the competitive digital media landscape.
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