Social network X continues to face challenges — advertisers remain wary of potential reputational damage associated with the platform. Since Elon Musk took the company private, it has ceased publishing income reports. However, according to data from marketing research agency Emarketer cited by the New York Times, the platform’s advertising revenue plummeted by 52% last year alone.
Emarketer’s calculations show that X’s advertising revenue in 2023 amounted to $1.13 billion after the 52% drop. The firm forecasts a less dramatic decline for this year, projecting a decrease of only 2.5%. In June, X management informed employees that 65% of advertisers had resumed their campaigns on the platform, though they are likely spending less than before.
U.S. Performance and Future Projections
In the United States, the social network earned $114 million, as reported by the New York Times citing internal company documents. This figure represents a 25% decrease from the previous quarter and a 53% decline compared to the same period last year. For the third quarter of 2024, the company anticipates earning $190 million in its home country, banking on advertising related to the Olympics, football events, and election campaigns. However, even if this goal is achieved, quarterly revenue would still be 25% lower than in the third quarter of 2023, adds NIXsolutions.
Despite these challenges, X CEO Linda Yaccarino, hired by Musk to revitalize the company’s business, remains optimistic. At a meeting with company employees in May, she stated, “My job is to clear the way for all of you to succeed and for X to become a global platform.”
We’ll keep you updated on X’s advertising revenue situation as new information becomes available.