X’s Advertising Struggles Under Elon Musk
Since entrepreneur Elon Musk acquired X, formerly known as Twitter, in October 2022, the social media platform has faced significant challenges in maintaining its advertising revenue. A recent tracker published by the marketing agency Gupta Media paints a stark picture of this decline, using cost per thousand impressions (CPM) as a key metric. CPM is a standard advertising industry measure used to evaluate the cost-effectiveness of online ad placements. When this metric drops, it typically signals decreased ad revenue, and that has been clearly evident in X’s case.
In the month following Musk’s acquisition, X’s CPM plummeted more than 75%, falling from $5.77 in September 2022 to just $0.51 in October 2023. This marked the lowest CPM level for the platform in three years. Such a sharp decline reflects waning advertiser confidence and reduced demand for ad space on X.
Temporary Recovery Followed by Renewed Decline
Despite the grim numbers in 2023, there were brief signs of recovery. By November 2024, coinciding with the U.S. presidential election, X’s CPM surged to over $7.00. This temporary uplift was likely driven by the heightened demand for political advertising and increased user engagement during the election season. However, this recovery was short-lived. By August 2025, CPM had plunged once again to $0.54 and hovered around $0.86 in the most recent data available.
This rollercoaster trend highlights the platform’s ongoing struggle to maintain a stable and attractive environment for advertisers. While peak events can temporarily boost metrics, the underlying issues dampening advertiser interest have not been fully resolved.
Comparison with Other Social Media Platforms
Among the various platforms analyzed in Gupta Media’s study, X experienced the steepest annual drop in CPM. Other platforms, including Facebook and Instagram, have also experienced CPM fluctuations, particularly during the COVID-19 pandemic and major online shopping events such as Black Friday and Cyber Monday. However, none have suffered as dramatic or sustained a decline as X.
During the pandemic, Facebook’s ad rates dipped, but they quickly rebounded as digital advertising recovered. In contrast, X’s troubles appear more systemic and are closely linked to the platform’s internal changes and public reputation under new leadership.
Advertiser Concerns Over Platform Environment
One of the primary factors contributing to X’s advertising woes is the platform’s evolving content moderation policies. Since Musk’s takeover, X has significantly reduced its moderation teams, leading to a noticeable increase in misinformation and hateful content. This shift has raised alarms among advertisers who are concerned about brand safety and the potential negative association with controversial or harmful content.
As a result, many advertisers have either scaled back or entirely halted their campaigns on X. The loss of advertiser trust has been a major blow to the platform’s revenue model, which heavily relies on advertising dollars to sustain operations.
The Role of Leadership and Strategic Direction
Musk’s leadership style and public statements have also played a role in shaping advertiser sentiment. His polarizing persona and unpredictable decision-making have introduced a level of uncertainty that many brands find unsettling. Stability and predictability are crucial for long-term advertising partnerships, and the current climate at X offers little of either.
Efforts to diversify revenue streams, such as introducing paid verification and subscription models, have yet to offset the decline in ad income. Without a clear and consistent strategy to rebuild advertiser trust, X may continue to face financial headwinds.
Looking Ahead: Can X Rebound?
The future of advertising on X remains uncertain. While the platform still has a sizable user base and cultural relevance, its ability to monetize that audience is in jeopardy. To reverse its fortunes, X will need to implement more robust moderation policies, enhance transparency, and rebuild relationships with major advertisers.
Moreover, restoring confidence in the platform’s stability and strategic vision will be essential. Without these changes, X risks becoming a cautionary tale of how rapid leadership changes and policy shifts can destabilize a once-prominent digital advertising hub.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.