Musk's substantial investment in the re-election of President Trump yields results, as advertisers return to X to avoid legal complications or targeting by the Trump administration. The Wall Street Journal details how X is negotiating with advertisers, urging them to increase their spending. Notably, an advertising agency seeks to merge while managing anxieties about regulatory scrutiny under the current administration. Historically, X has faced advertiser abandonment since Musk's acquisition due to content moderation changes and brand safety concerns, though some new features may mitigate these risks for brands.
According to multiple sources, in a pointed phone conversation, X made clear its demand: increase ad spending on the platform, or face consequences.
Musk's controversial management has galvanized strong anti-advertising sentiment among brands, yet recent efforts show a shift in attitudes as advertisers cautiously return.
Despite X's smaller audience, it’s leveraging a precarious situation caused by the changing political landscape to negotiate advertising deals.
Advertisers are navigating a complex environment where taking a stand could result in backlash from either the Trump administration or unhappy consumers.
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