X Sees First Ad Revenue Growth Since Musk's Takeover

X, the social media platform formerly known as Twitter, is set to see its first advertising revenue increase since Elon Musk’s acquisition in 2022, according to Emarketer. The platform's projected US ad revenue for 2025 stands at $1.31 billion, reflecting a 17.5% rise. Globally, ad sales are expected to grow by 16.5% to reach $2.26 billion.

Musk’s Political Influence Driving Advertisers Back

A key factor in the increase is the shift in advertisers' approach following Musk’s role as a senior adviser to President Donald Trump. Jasmine Enberg, Principal Analyst at Emarketer, suggests that many brands are resuming ad spending on X due to political considerations and a desire to maintain favorable relations with the administration.

X’s Revenue Still Below Pre-Musk Levels

Despite the projected growth, X’s financial position remains significantly weaker than before Musk's acquisition. The company reported $4.5 billion in ad revenue in 2021, its last full year as a publicly traded entity. This means that even with the expected increase, revenue levels remain far below their pre-acquisition peak.

Content Moderation Changes Impacting Advertisers’ Decisions

X experienced a major loss of advertisers following Musk’s decision to loosen content policies and reduce content moderation efforts. Concerns over brand safety led many companies to pause or withdraw their ad spending. However, major competitors such as Meta (which owns Facebook and Instagram) have since relaxed similar policies, setting a new industry norm.

Legal Concerns and Business Pressures on Advertisers

Some advertisers are reportedly returning to X not out of preference but due to Musk’s legal threats against major brands that ceased spending on the platform. Some companies view advertising on X as a necessary expense to avoid litigation.

Financial Recovery and Market Adjustments

In addition to ad revenue growth, X has benefited from Musk’s political ties in other financial aspects. Banks holding debt from Musk’s acquisition were able to offload it without losses, and new investors have injected capital into the company at a valuation close to Musk’s original purchase price.

Long-Term Forecast Remains Below Previous Highs

Despite short-term growth, Emarketer predicts that X’s ad business will not return to pre-Musk levels anytime soon. The firm projects that global ad revenue will reach $2.6 billion by 2027—still 42% lower than its 2021 peak.

While the recent uptick marks a positive shift, X’s long-term outlook remains uncertain as it navigates political influences, legal pressures, and changing advertiser expectations.