Elon Musk-owned social media platform X is on track to record its first year of advertising revenue growth since the billionaire’s acquisition in 2022. According to research firm Emarketer, U.S. ad sales for the platform are projected to rise by 17.5% in 2025, reaching $1.31 billion. Meanwhile, global ad revenue is expected to grow 16.5% to $2.26 billion.
This growth marks a significant turnaround for X, formerly known as Twitter, which has struggled to retain advertisers under Musk’s leadership. Since his $44 billion takeover, major brands had initially pulled back due to concerns over content moderation and corporate instability. However, recent trends indicate a shift, with brands slowly returning, particularly as Musk’s influence expands within the U.S. government. His role in the U.S. Department of Government Efficiency has reportedly increased corporate willingness to engage with the platform.
Jasmine Enberg, a principal analyst at Emarketer, attributed part of the revenue increase to business caution, noting that some advertisers see spending on X as a necessary move to avoid legal or financial repercussions. Enberg also highlighted that X has managed to attract small- and medium-sized businesses, a sector it previously struggled to engage.
Despite the projected growth, X’s ad business remains significantly smaller than it was before Musk’s takeover. As a publicly traded company in 2021, X reported $4.51 billion in ad revenue. The current estimates suggest that while the platform is regaining ground, it has yet to fully recover from the advertiser exodus following Musk’s acquisition.
Competition in the digital advertising space remains fierce. Platforms like Meta’s Instagram and ByteDance’s TikTok continue to dominate, vying for a larger share of the market. Additionally, economic uncertainty, fueled by U.S. tariffs and policy shifts under the new administration, could impact ad spending across social media platforms.
A recent report from MoffettNathanson noted that U.S. advertising growth forecasts have been lowered due to economic fluctuations, including federal job cuts and shifting trade policies.
As a private company, X does not disclose financial data, and it has yet to comment on Emarketer’s findings. However, the projected ad revenue growth signals a potential revival for the platform as it adapts to new market dynamics.
