"Just 11.9% of respondents said yes, while 88.1% said no. The reaction highlights a challenge X has faced since Musk bought the platform in 2022. Advertising remains the company's primary revenue source, but brands and users have often questioned how effective ads are on the site."
"By late 2024, there were signs of improvement as many companies resumed advertising campaigns after roughly a yearlong boycott. Musk publicly thanked those companies for returning. In a post on X, he wrote at the time, 'Just want to say that we super appreciate major brands resuming advertising on our platform!'"
"Last year, Musk told advertisers the company had finally developed technology capable of making ads more relevant to users. During a livestream presentation, he said earlier systems often showed users ads that felt like 'random spam.' But with AI-powered matching technology using the Grok system, Musk said the platform could connect users with products they actually want."
X faces substantial advertising challenges, as evidenced by a poll showing only 11.9% of users have made purchases based on platform ads. Advertising remains the company's primary revenue source, yet effectiveness concerns have persisted since Musk's 2022 acquisition. After initial tensions with advertisers, including Musk's controversial remarks, many brands resumed campaigns by late 2024 following a yearlong boycott. The company has worked to rebuild advertiser trust through improved content placement controls. Musk attributes potential improvements to AI-powered matching technology using the Grok system, which aims to deliver more relevant ads rather than random spam, potentially connecting users with products they actually want.
#x-advertising-effectiveness #advertiser-boycott-recovery #ai-powered-ad-targeting #social-media-monetization
Read at Benzinga
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