5 days Ago
Many of X's former top advertisers have been slowly returning to the social media platform, and are resuming their ad spending after leaving the platform a year ago in response to an increase in antisemitic content and hate speech. Major brands, including Apple, Comcast, Disney, Discovery, and IBM, had pulled their ads after tech entrepreneur Elon Musk was seen to endorse an antisemitic conspiracy theory. However, the ad buys are smaller than before—and it isn't clear if the spending will reach pre-boycott levels.
According to data from marketing intelligence platform MediaRadar, from January to September, the major brands collectively spent less than $3.3 million on X, the social media platform formerly known as Twitter. That was a 98% year-over-year drop from the $170 million that the brands had spent over the same period in 2023, AdWeek reported.
Return To X As Trump Prepares White House Return The news of the brands return to X comes just weeks after President Donald Trump's victory in the 2024 presidential race, which is now being seen as the greatest comeback in political history. Given that fact, and how popular he is on X, it shouldn't be surprising that brands are returning. As Michael Jordan once famously quipped, "Republicans buy sneakers, too,"—a point that can't be dismissed even as the country remains deeply divided politically.
MAGA supporters do buy iPhones and visit Disney World, while X maintains its massive audience, which also includes plenty of Trump detractors. "Trump's return is likely a factor in the return of advertisers. Given his connection to Elon Musk, brands may be trying to align themselves with both figures, whether to curry favor or to stay in their good graces," said Colin Campbell, associate professor of marketing at the University of San Diego's Knauss School of Business and editor-in-chief of the Journal of Advertising Research .
"Brands are certainly aware that Trump and Musk hold considerable influence with a large segment of the population. Being on X could help them build goodwill or avoid potential backlash from these influential audiences," Campbell explained. Those brands are returning X after their initial pullback, and a big reason is the power of network effects.
"Despite its challenges, X remains one of the few platforms where conversations can scale rapidly, with content spreading across a wide and diverse audience almost instantly," Campbell added. "Brands recognize that staying away means missing out on these interactions and the cultural relevance that comes with them. On top of that, when competitors return and reengage the pressure to maintain visibility and relevance increases.
" Concerns among many brands will remain—including the direction that X could still take; and it is likely that brands will seek to diversify their respective ad spending as a result. For those reasons, no one should expect brands to put too many eggs in the X basket. Some companies may return to X simply because Republicans buy sneakers too, but also to ensure they don't end up on a proverbial enemy's list.
"Don't assume companies are running from X, which I predict could become a lobbyist channel to gain favor from the White House. If I'm a large brand, I'm not spending a lot on X because I'll likely never get my return, but I do want to spend enough that President Trump sees me as a friend in the market for any future policy favor," suggested Dr. Dustin York, adjunct professor in the College of Journalism and Communications at the University of Florida .
Heading To Bluer Skies? Even as brands return to X, the bigger winner right now could be Bluesky, which has seen a surge of new users. The platform is attracting many who see it as a Twitter 2.0.
Brands are likely watching closely if the X alternative could be where their future ad dollars should be directed. "Bluesky is definitely one to watch, but ads likely won't show up immediately," Campbell continued. "The platform will probably remain ad-free for some time as it focuses on building and locking in its audience.
By keeping the user experience clean and uncluttered, they can encourage more people to join and establish habitual usage. Once they've reached a critical mass and users are more deeply engaged, we can expect Bluesky to gradually introduce ads as a way to monetize. At that point, brands will likely start exploring the platform.
" While it doesn't have ads currently, it is likely a matter of time, added Laura Graham, a public relations professional and faculty member at North Carolina Central University . "At some point, Bluesky will need to generate revenue rather than relying on investor funding. Typical options—paid ads, charging for premium services, or membership subscriptions seem to be outside of how Bluesky is positioning itself, however.
They will either need to find a new business model or find a way that traditional revenue sources fit into their ethos," said Graham. Moreover, some brands have made their respective stance on X a reflection of their company culture. "Those brands probably can't return to advertising or posting on X unless they position themselves as part of a resistance/opposition movement or unless X makes some policy changes that they can point to as having materially changed the landscape," Graham noted.
Getting Creative Brands will seek to go wherever there is a sizeable audience. For now, that means X, but in the future, it could be other platforms. And it could involve influencers and creators to create non-traditional ad content.
"Whether it be X, Bluesky, or even Threads, one thing is consistent with advertisers: where can they capture the eyeballs of their target audience," said York. "Due to their recent growth, look for brands to lean into user-generated content and trend-related commentary on Bluesky until advertising becomes available.".
