Amazon has significantly increased its advertising spending on X, the social media platform owned by Elon Musk, according to a recent report. This move comes over a year after the e-commerce giant drastically reduced its ad presence on the platform.
Other major companies, including Apple, scaled back or entirely eliminated their advertising on X (formerly Twitter) in 2022, citing concerns about a rise in hate speech following Musk’s acquisition. Musk, who describes himself as a “free speech absolutist,” took ownership of the platform that year.
Apple, which completely halted its X ad spending in 2023, is now reportedly reconsidering its strategy, as are several other brands, according to The Wall Street Journal. This potential shift in advertiser behavior suggests a possible reassessment of the platform’s advertising environment.
X, the social media platform owned by Elon Musk, faces ongoing financial challenges despite the return of some advertisers, according to The Wall Street Journal. While some companies are resuming ad spending, their buys remain significantly lower than before Musk’s $44 billion acquisition and rebranding of Twitter to X.
This news comes as Musk recently acknowledged the company’s struggles in a letter to staff, stating, “Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even,” according to the Journal. Musk has since denied sending the email.
The report also highlights past political connections, noting that Amazon founder Jeff Bezos and other tech CEOs, including Meta’s Mark Zuckerberg, Apple’s Tim Cook, and Google’s Sundar Pichai, attended the 45th President’s inauguration and that their respective companies, Amazon, Meta, and Apple, donated to the inaugural committee.
New ad revenue is critical for X’s financial recovery. Last summer, X filed an antitrust lawsuit against the Global Alliance for Responsible Media, the World Federation of Advertisers, and several of their members, alleging an illegal ad boycott. The suit is still pending.