Elon Musk’s advertising business on X is expected to see its first annual growth since 2021 this year, according to a new forecast by research firm EMARKETER. The company’s US digital ad revenue is projected to jump 17.5% to $1.3 billion, while global ad revenue will increase 16.5% to $2.3 billion.
However, EMARKETER principal analyst Jasmine Enberg cautioned that some of the growth may be driven by fear, rather than genuine demand for X’s services. Advertisers are paying up to avoid potential legal or financial repercussions, Enberg said. “Fear is not a sustainable motivator,” she warned.
The report echoes previous concerns about X’s advertising business being driven by fear and the need for advertisers to pay an “Elon tax” to avoid backlash from Musk’s changes to the company. The company has faced scrutiny over its moderation policies, staff layoffs, and lawsuit against several advertisers who boycotted the platform.
Despite this, small and medium-sized businesses have started to flock to X, and the company may benefit from Meta’s new lax moderation policies. X’s ad revenue is still lower than it was before Musk took over in 2022, when the company pulled in $2.4 billion in US ad revenue.
Source: https://www.businessinsider.com/elon-musk-x-advertising-revenue-on-upswing-analys-estimates-2025-3