In an effort to reassure its advertising partners of its commitment to brand safety, X has recently rejoined the World Federation of Advertisers’ ‘Global Alliance for Responsible Media’ (GARM). This coalition aims to tackle the issue of harmful content on digital media platforms and its impact on advertising monetization. This move comes after a period of distancing from GARM following Elon Musk’s takeover of the app, which resulted in key members of Twitter’s brand safety team leaving the company.
Brand Safety Concerns
One of the primary reasons for brands being wary of advertising on X is the perception that Elon Musk’s approach to content moderation is lax, leading to the proliferation of offensive and potentially harmful content on the platform. Reports suggest that X is allowing more hate speech and conspiracy theories to circulate, prompting advertisers to reconsider their ad spend on the app. Additionally, Musk’s own behavior, amplifying conspiracy theories and sharing divisive opinions, creates further concerns for advertisers regarding brand association.
Despite having 250 million daily active users, X’s reach is significantly lower than other social media platforms such as Instagram, YouTube, Facebook, TikTok, and Snapchat. Moreover, X’s userbase has not grown since Musk took over, making it less appealing to brands looking to reach a wider audience. Combined with the platform’s limited direct response capabilities, advertisers may find X less attractive for promoting their brands.
The Challenge of Reversing the Trend
To address these challenges and regain advertiser trust, X needs to focus on growth as a critical starting point. Musk’s ambitious goal of reaching 600 million daily active users by 2025 seems unlikely, given the app’s stagnant user growth. Without a substantial increase in its audience, X may struggle to become a more compelling platform for advertisers.
X could explore avenues such as X Payments and xAI’s Grok chatbot to drive user engagement and interest in the platform. While achieving 120% growth may be a stretch, these initiatives could help X attract more users and in turn, improve its ad business. Additionally, strengthening brand safety partnerships and participating in frameworks like GARM are essential steps for X to rebuild trust with advertisers. However, a combination of factors, including user growth, engagement, and brand safety measures, will be crucial for X to maximize its advertising revenue.
Rebuilding advertiser trust is a multifaceted challenge for X, requiring a strategic approach that addresses key concerns such as brand safety, user growth, and audience reach. While participation in initiatives like GARM demonstrates a commitment to responsible advertising practices, X must also focus on enhancing its platform’s appeal and addressing the issues that have led to advertisers’ hesitation. By implementing a comprehensive strategy that aligns growth objectives with brand safety measures, X can work towards regaining advertiser confidence and securing its position in the competitive digital advertising landscape.
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