Elon Musk’s X sees drop in ad revenue despite Apple and other brands returning

Elon Musk's social media platform X (formerly Twitter) has successfully attracted new advertisers, with brands like Apple making a return. But its overall advertising revenue remains significantly lower than before Musk’s takeover.

An analysis, based on data from four independent agencies, found that while the number of advertisers has increased, total ad spending on X is yet to recover to previous levels.

More advertisers, but lower ad revenue

Data from market intelligence firm Sensor Tower revealed that 46 of the top 100 US advertisers on X in January 2025 had not advertised on the platform in 2022, according to Business Insider.


But overall spending by these top advertisers in January 2025 was lower than in January 2024.

Meanwhile, data from research firm MediaRadar indicated that X's US advertising revenue is projected to decline to $1.4 billion in 2024, a 28% drop from nearly $2 billion in 2023. Despite this, the number of companies advertising on X increased by 15% year-on-year.

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The rise in advertisers may be attributed to X’s partnerships with ad tech firms such as Magnite, Google, and PubMatic, which facilitate ad sales at lower prices than direct sales.

In response to speculation about declining revenue, Musk posted a cryptic reply on X, stating, “It’s almost like I'm good with money.”

Political influence on advertising trends

The Business Insider report noted that the increase in advertisers coincided with the US presidential election and Musk’s growing political influence. However, some marketers remain wary of potential political risks and are reconsidering their presence on X.

A media buyer quoted by Business Insider observed a growing trend of advertisers hedging against political uncertainty. They added that corporate CEOs are now directly involved in media purchasing decisions.

Despite the return of some advertisers, industry experts remain sceptical about a full-scale recovery. Ebiquity, a company advising major advertisers, reported that only one of its clients spent on X in December 2024, compared to 13 in December 2023.

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Guideline, an analytics firm tracking ad expenditure, recorded a 123% surge in US ad spending on X from major agencies in December 2024 compared to the previous year, followed by a 42% rise in January. While this suggests a possible rebound, spending remains significantly below pre-Musk levels.

X is currently attracting advertisers, but whether it can fully restore its lost revenue remains uncertain.

FAQs

1. Has X regained its pre-2022 advertising revenue?
No, X’s advertising revenue remains significantly lower than before Elon Musk’s takeover, despite an increase in advertisers.

2. Why are advertisers returning to X?
Some brands are cautiously returning due to shifting political dynamics and Musk’s growing influence, but many remain hesitant.