New York [US], March 27: Elon Musk-owned social media platform X is poised for the company's first year of advertising revenue growth since its acquisition by the billionaire in 2022, data from research firm Emarketer showed on Wednesday.
Brands are returning to X at a time when Musk's influence has grown in the Trump administration, with the Tesla (TSLA.O), opens new tab CEO's key role in the U.S. Department of Government Efficiency.
In 2025, X's U.S. ad revenue is expected to grow 17.5% to $1.31 billion, while global ad sales are estimated to rise 16.5% to $2.26 billion, according to Emarketer.
Enberg said X has managed to attract small- and medium-sized businesses, which the company has historically struggled with.
Social platforms including Meta Platforms-owned (META.O), opens new tab Instagram and short-video app TikTok jostle for a larger share of the ad market that could be impacted by U.S. tariffs and economic uncertainty.
MoffettNathanson on Monday trimmed its U.S. advertising growth forecast to more than 5.8% from over 6.9%, citing a flurry of changes brought by the new administration.
Emarketer's data showed that even with the projected spending increase, X's ad business is still smaller than it was when Musk acquired the company for $44 billion in late 2022.
As a private company, X does not disclose financial data. In 2021, it had reported ad revenue of $4.51 billion as a publicly traded company.
X did not immediately respond to a Reuters request for comment.
It had hired NBCUniversal advertising chief Linda Yaccarino as CEO in 2023.
Source: Fijian Broadcasting Corporation
