Elon Musk-owned social media platform X is expected to report its first annual ad revenue growth since his acquisition in 2022, according to data from research firm Emarketer. The company’s U.S. ad revenue is projected to grow 17.5% to $1.31 billion in 2025, while global ad sales are estimated to rise 16.5% to $2.26 billion.
Musk’s influence on X has grown amid a backdrop of economic uncertainty and changes brought by the new administration. The company has managed to attract small- and medium-sized businesses, which it had historically struggled with. Despite this growth, X’s ad business remains smaller than it was before Musk acquired the company for $44 billion in 2022.
Advertisement revenue is expected to increase due to fear among advertisers who view spending on X as a cost of doing business to mitigate potential legal or financial repercussions. Emarketer principal analyst Jasmine Enberg attributed this growth to X’s ability to attract small- and medium-sized businesses, which the company had previously struggled with.
However, other analysts are more cautious. MoffettNathanson trimmed its U.S. advertising growth forecast to over 5.8% from over 6.9%, citing uncertainty caused by tariff announcements and federal job cuts. Despite this, X’s ad business is still expected to grow, albeit at a slower pace than initially predicted.
The company has hired NBCUniversal advertising chief Linda Yaccarino as CEO since 2023 and continues to navigate its new role under Musk’s leadership.
Source: https://www.reuters.com/technology/x-report-first-annual-ad-revenue-growth-since-musks-takeover-data-shows-2025-03-26