It was just a week ago that X chair Elon Musk told former X advertisers like Disney and Apple to “go f*ck themselves.” And in a shocking twist, it didn’t bring them back.

This all marks a dramatic turn the-artist-formerly-known-as-Twitter has taken over the past year. At the start of 2023, advertisers were bullish that the richest person in the world could turn the stagnant social network around. Now, the opposite seems increasingly likely.

As we enter 2024, many advertisers are asking the question: is advertising on X still worth it? Let’s take a look.

The war on X advertisers

(Image source: The New York Times)

The problems started almost as soon as Musk’s deal to buy Twitter closed. By November 2022, NPR reported that they’d lost 50 of their top 100 advertisers. By February, more than 500 of the top 1000 had left. Their concerns included impersonation, staff shake-ups, reinstating banned accounts, and more.

Amidst all this, Musk made efforts to stem the bleeding, including offering flashy deals for advertisers and, eventually, hiring Linda Yaccarino to take over as CEO.

But at the same time, he lashed out at those who’d left, threatening them with lawsuits and accusing them of “[hating] free speech in America.” This cycle continued throughout 2023.

Things took another turn in October when Musk personally endorsed an antisemitic tweet accusing “Jewish communities” of promoting “hatred against whites.” Musk has apologized, but has not deleted the endorsement.

This seems to have been the final straw for many major advertisers, including Disney and Apple. Musk seemed pessimistic at the NYT DealBook Summit, saying these advertisers would likely kill the company.

What marketers are saying

Marketing consultant Lou Paskalis told the New York Times that those who’ve left X won’t be returning. “There is no advertising value that would offset the reputational risk of going back on the platform.” 

Other outlets report the same. Companies feel that X advertising could stain their reputation—if not now, then the next time Musk starts a fire.

Penji is a leader in the design-as-a-service industry, offering creative services to businesses and agencies at a subscription rate. We spoke to Harper Goldman, a senior member of Penji’s marketing team, to get insight into how the marketing industry is responding.

“On the one hand,” she says, “of course the advertisers were going to leave. That’s the whole tension of the internet. The less rules you have, the less money you make.”

“On the other hand, Apple pulled out before, and then they came back. I don’t think any company’s actually faced blowback for advertising on Twitter—it’s still seen as a regular social network—so if there’s money to be made, they’ll probably be back.”

That raises the question: is there money to be made?

Is X advertising worth it in 2024?

Look, in light of Musk’s statements, we’re not gonna tell you you should advertise on X. But there may be some upside.

When a majority of top advertisers leave a platform, it creates a lot of cheap inventory. CPMs for advertising on X have reportedly been slashed since Musk took over. The platform still gets a ton of traffic, so making use of it can be a way to stand out… if you want that kind of attention.

Here’s the thing: the downside of X isn’t just association with Musk. Musk’s takeover has led to a huge spike in stolen content and impersonation, which the dwindling moderation team struggles to keep up with.

As it becomes a less reputable platform, less reputable brands have flocked to it. This means that advertising on X can mean sharing space with sketchy brands, criminal activities, and yes, more bigotry than ever before.

The bottom line: Advertising on X is high risk. There are bound to be more controversies to come, and most advertisers would rather get out now than wait for the other shoe to drop. It can also be high reward, so it’s up to businesses to decide what risks they’re willing to take.

What other options do marketers have?

“Twitter was never a huge part of our strategy,” Goldman admits. “Or a lot of our clients, for that matter. The reporting is not good, the targeting is not good, there’s a lack of control. And Facebook and Google have so much control and so much reporting that there’s really no contest.”

This is another piece of important context. Twitter wasn’t an important platform for most brands, and its appeal was always niche. While it’s a highly trafficked website, it wasn’t great for advertising to begin with.

At Penji, whose target audience is marketers and agencies, shakeups at X haven’t made much of a difference. “The only difference is that it’s in the news. People are talking about it. But that doesn’t mean they want to use it.”

Conversations around X have shifted from “Can Musk turn it around?” to “Can he control the damage?” The platform is still leaking brands and users, and people are starting to wonder how long it can stay afloat.

Our recommendation? The social media landscape is changing fast. Stay on top of new trends. There’s still money to be made in X advertising, for now. But don’t say we didn’t warn you.

In today’s fast-paced and competitive business landscape, startups often find themselves navigating a maze of challenges that can hinder their growth and potential.

This is where the concept of a startup incubator comes into play as a guiding light for emerging ventures. A startup incubator is more than just a physical space; it’s a dynamic ecosystem designed to nurture and propel early-stage ventures toward success. 

In this article, we’ll tackle some of the most common questions surrounding incubators. For instance – what is the role of a startup incubator? How does it differ from an accelerator?

And most importantly, how can it optimize your business? 

Let’s begin!

What is an incubator in a startup ecosystem?

In a startup ecosystem, an incubator refers to a supportive environment or program designed to help early-stage startups grow and develop.

Incubators provide a range of resources and services to entrepreneurs, typically for a fixed period of time, with the goal of nurturing and accelerating the growth of their businesses.

Here’s the usual process of how an incubator supports a startup:

Onboarding

Startups who applied and were accepted are welcomed into the incubator with an orientation session. During this phase, startups get an overview of the program’s structure, expectations, and available resources. They also meet their mentors, advisors, and fellow cohort members.

Mentorship and Guidance

Startups are paired with mentors who have relevant industry experience or expertise.

Regular mentorship sessions provide guidance, feedback, and insights to help startups navigate challenges and refine their strategies.

Workshops and Training

Incubators organize workshops, seminars, and training sessions on various aspects of entrepreneurship. Topics covered during the startup incubator program may include:

• Business planning
• Marketing strategies
• Product development
• Legal and regulatory matters
• Fundraising

Access to Resources

Aside from training sessions, startups can also gain access to resources such as:

• Office space
• Co-working environments
• Internet connectivity
• Meeting rooms

Some incubators provide access to shared equipment, startup software, and other tools needed for product development.

Networking and Events

Incubators often facilitate networking events, pitch sessions, and demo days where startups can showcase their progress to potential investors, partners, and the broader community.

Business Development

Startups work on refining their business models, products, and market strategies. They receive support in identifying their target audience, creating a value proposition, and developing a sustainable revenue model.

Funding and Investment

Incubators may provide introductions to potential investors, venture capitalists, and angel investors Startups also learn about different funding options and how to pitch their ideas to secure investment.

Graduation

Successful completion of the incubator program results in a “graduation” for startups.

Graduated startups may continue to receive support through alumni networks, ongoing mentorship, or access to incubator resources.

Startup Incubator vs. Accelerator

A startup incubator and a startup accelerator are both support programs designed to assist early-stage startups, but they have distinct characteristics and objectives. Here’s a comparison between the two:

• Focus. Incubators typically have a broader focus and cater to startups in various stages of development. They often work with startups that are in the ideation or early development phase. Accelerators, on the other hand, are more specialized and typically work with startups that have a viable product or service and are ready to scale rapidly. They focus on accelerating growth and reaching key milestones quickly.
• Stage. Incubators are well-suited for startups that are still refining their business models, conducting market research, and building their initial product or service. Accelerators, meanwhile, are best suited for startups that have a minimum viable product (MVP) and are seeking to refine their business model, gain traction, and secure funding to scale.
• Mentorship. A startup incubator provides mentorship and guidance, often with a focus on helping founders refine their business ideas, develop prototypes, and validate their concepts. On the other hand, an accelerator’s mentorship is often geared towards specific aspects of growth, such as scaling operations, marketing, fundraising, and product-market fit.

Startup Incubator Examples

If you’re looking for the best startup incubators in the world, here are a few you of the most popular ones to consider.

1. Y Combinator

Situated in the USA, Y Combinator is considered one of the best startup incubators which has played an instrumental role in fostering the growth trajectories of some of the most renowned startups globally. The Y Combinator program spans a duration of three months, during which startups receive a funding injection of $500,000, albeit subject to certain conditions.

Subsequently, founders are immersed in a sequence of mentoring and refinement initiatives that culminate in the prestigious Demo Day. Here, founders showcase their concepts to an audience comprising investors and handpicked media representatives.

Mentees: Airbnb, Dropbox, Coinbase, Gitlab

2. Techstars

Techstars directs its energy toward nurturing startups rooted in technology. Since its inception in 2006, Techstars has been a driving force behind the growth of numerous startups. Annually, they select more than 500 fledgling companies, providing them with up to $120,000 in investment and the invaluable chance to partake in mentorship programs.

Backed by an impressive funding sum of $21.3 billion, Techstars stands out as a reliable choice for technology-oriented startups. Within its portfolio of activities, Techstars hosts several high-profile events and initiatives, including Startup Week and Startup Weekend.

Mentees: Uber, DigitalOcean, SendGrid

3. 500 Startups

500 Startups operates as a dual-purpose platform, functioning as both an accelerator program and a seed fund dedicated to startups. Positioned primarily as a venture capital entity, they proudly proclaim a management portfolio worth $2.7 billion. Their primary interests converge on sectors where technology, innovation, and capital growth converge harmoniously.

Their extensive investment history spans more than 2,600 startups worldwide, underscoring the maturity and comprehensiveness of their accelerator program across diverse markets. 

Mentees: Grab, Canva, Credit Karma

Frequently Asked Questions (FAQs)

Do I need an incubator for my startup?

If you’re in the early stages, lack experience, and could benefit from structured guidance, resources, and mentorship, an incubator might be valuable. However, if you’re aiming for rapid growth and have a clear roadmap, an accelerator could be more appropriate. 

Do startup incubators provide funding?

Yes, many startup incubators provide funding as part of their support package. However, the funding offered by incubators can vary widely depending on the specific program, location, and the terms of the agreement. Some incubators offer direct funding to startups, while others may connect startups with potential investors or provide resources to help them secure funding elsewhere.