Is X now the platform for smaller companies to advertise?

Let’s face it, Search Engine Marketing (SEM) isn’t what it used to be. Facebook’s appeal for advertisers is waning due to constant privacy changes. Instagram has become oversaturated with ads, and user growth has slowed. TikTok is undoubtedly a powerful platform, but cracking its algorithm requires a Spielberg-level production budget.

While other SEM platforms like Pinterest and YouTube are regaining popularity, the most buzzworthy and potentially lucrative option right now is X (formerly Twitter).

Admittedly, X is a far cry from its Twitter days. Elon Musk’s “free speech” policy has driven many users to alternative platforms like Threads, Bluesky, and Mastodon.

So, is it worth advertising on X?

Musk’s takeover has been tumultuous. Advertisers are fleeing, with ad revenue dropping significantly in the first half of 2024. This decline reflects a broader trend since Musk took the helm in late 2022.

The problems stem from a combination of factors: Musk’s erratic behavior, policy changes, the platform’s struggles with hate speech and misinformation, and advertisers’ concerns about brand safety. Musk’s clashes with advertisers, coupled with his public outbursts, have created an unstable environment.

Under Musk, X has seen a rise in hate speech and misinformation, making brands hesitant to associate with the platform. His disregard for brand safety and lack of effective content moderation have only worsened the situation.

These issues have led to a mass exodus of advertisers. Major companies like Disney, NBCUniversal, and Volkswagen have paused or cut their ad spending on X. Spending in the first six months of 2024 is already down 24% compared to 2023.

We’re certainly not Disney, nor do we have NBC’s budget. However, we’ve decided to experiment with a small ad campaign on X. We’re pausing some of our Meta and Google budgets to see if this shift yields any results. Let’s see how it goes!