X’s Struggle with Brand Safety and Ad Partnerships

In a bid to reassure ad partners of its commitment to brand safety, X has rejoined the World Federation of Advertisers’ Global Alliance for Responsible Media (GARM). This coalition aims to address the issue of harmful content on digital platforms and its impact on advertising monetization. This move by X comes after a period of distancing from GARM following Elon Musk’s takeover of the app, which resulted in significant changes within Twitter’s brand safety team. However, X is now looking to reaffirm its dedication to GARM’s mission by committing to uphold the guidelines set out by the alliance. This recommitment is part of X’s efforts to demonstrate its focus on maintaining brand safety credentials and attracting ad partners back to the platform.

One of the key challenges faced by X is the perception that Elon Musk’s more relaxed approach to content moderation has led to an increase in offensive and harmful content on the platform. This perception poses a risk of negative brand association for advertisers, leading many to reconsider their ad spend on X. Reports suggest that X is allowing more hate speech and conspiracy theories to proliferate, further deterring ad partners from investing in the platform. Additionally, Musk’s own controversial statements and amplification of divisive content contribute to brands viewing X as a less valuable platform for promotions compared to other social media outlets with larger audiences like Instagram, YouTube, Facebook, TikTok, and Snapchat.

Despite having 250 million daily active users, X’s user base has not grown since Musk’s takeover in November 2022. This stagnant growth, coupled with the platform’s limited reach compared to its competitors, presents challenges for attracting ad partners looking to reach a broader audience. X’s inability to drive direct response and Musk’s ambitious growth projections for the platform further compound the issue. Musk’s vision of X reaching 600 million daily active users by 2025 and 931 million by 2028 seems unlikely given the current growth trajectory and existing challenges in retaining advertisers.

Path to Recovery

To overcome these obstacles, X must focus on revitalizing its user growth to make the platform more appealing to ad partners. Musk’s plans for X Payments and the integration of xAI’s Grok chatbot could present new opportunities for engagement and revenue generation. However, achieving significant growth will require a concerted effort to address brand safety concerns, strengthen partnerships like participating in the GARM framework, and enhance the overall appeal of the platform to advertisers. While these steps are essential, X’s success in maximizing ad intake will depend on a combination of factors aligning, including sustainable user growth, improved brand safety measures, and strategic partnerships with industry stakeholders.

X’s struggle with brand safety and ad partnerships highlights the multifaceted nature of the challenges facing the platform in the aftermath of Elon Musk’s leadership. Reinstating its relationship with the GARM is a positive step towards rebuilding trust with ad partners, but X must also address underlying issues such as content moderation, user growth, and audience engagement to regain its appeal as a valuable advertising platform. By leveraging a comprehensive approach that combines growth strategies, brand safety initiatives, and strategic partnerships, X can work towards revitalizing its ad business and solidifying its position in the competitive social media landscape.