"X is trying to make an ad product that isn't an ad. The idea of the format is to tie into organic mentions in the app, and users would not be compensated for ads displayed in this way because it would skew the incentives for such mentions."
"X is working to improve the value of its ad offerings in order to win back ad partners and bring in more revenue to power its expanding artificial intelligence projects. With the platform merging with xAI in March last year, that means that their resources are now combined."
"xAI is currently burning through $1 billion in cash per month as it works to build out its AI infrastructure. That means both companies need to find more money, and fast, to maintain their momentum."
X is piloting a new advertising format that places product promotions directly beneath user posts containing organic mentions of those products. The test was discovered when user @levelsio noticed a Starlink promotion appearing under his post mentioning Starlink, with a clickable CTA linking to the Starlink website. X's head of product Nikita Bier explained the format aims to create ads that don't feel like traditional advertisements by connecting to genuine user mentions. Users will not receive compensation for these ad placements to avoid incentivizing artificial mentions. The platform is developing this ad product to improve revenue and fund its AI infrastructure expansion, particularly supporting xAI's substantial operational costs.
#advertising-format #product-mentions #revenue-generation #ai-infrastructure-funding #x-platform-monetization
Read at www.socialmediatoday.com
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