The resurgence comes as Musk's influence expands within the Trump administration, where he plays a key role in the U.S. Department of Government Efficiency.
Projected Growth in 2025
- U.S. ad revenue is expected to grow 17.5% to $1.31 billion
- Global ad revenue is projected to rise 16.5% to $2.26 billion
Emarketer analyst Jasmine Enberg noted that part of this growth is being driven by fear, as some advertisers see spending on X as a way to avoid potential legal or financial repercussions.
Small Businesses and Market Challenges
- X has historically struggled to attract small- and medium-sized businesses, but recent trends show improvement.
- Competitors like Instagram (Meta) and TikTok continue to compete for a larger share of the digital ad market.
- The U.S. ad market faces challenges due to economic uncertainty and new tariffs imposed by the administration.
Still Below Pre-Musk Levels
Even with this projected increase, X’s ad business remains smaller than it was before Musk’s acquisition.
- In 2021, when X was still publicly traded as Twitter, it reported $4.51 billion in ad revenue.
- As a private company, X does not publicly disclose financial data.
X had hired former NBCUniversal advertising chief Linda Yaccarino as CEO in 2023 to help rebuild its advertising business. The company has not yet responded to requests for comment.