Is X Advertising Worth It in 2024? …Probably Not.

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.