As part of its ongoing efforts to reassure ad partners of its commitment to brand safety, X has announced its rejoining of the World Federation of Advertisers’ Global Alliance for Responsible Media (GARM). This coalition aims to address the challenges posed by harmful content on digital media platforms and its impact on advertising monetization. X’s decision to reinstate its relationship with GARM comes after a period of distancing from the organization following Elon Musk’s takeover of the app, which resulted in significant changes to Twitter’s brand safety team.
Challenges Faced by X in Maintaining Brand Safety
Despite its efforts to uphold brand safety standards, X has faced challenges in convincing ad partners to continue their partnerships with the app. The perception of lax content moderation rules under Musk’s leadership has led to concerns about offensive content and negative brand association for advertisers. Reports have suggested an increase in hate speech and conspiracy theory content on the platform, prompting many brands to reconsider their ad spend on X.
X has experienced a significant decline in ad revenue since Musk’s acquisition, with brands opting to reduce their spend on the platform due to various concerns. One of the key factors impacting ad partner decisions is X’s limited reach compared to other social media platforms such as Instagram, YouTube, Facebook, TikTok, and Snapchat. With 250 million daily active users, X falls short in audience size, making it less appealing for brands looking to reach a broader demographic.
To address these challenges, X must focus on increasing its user base and improving audience engagement. Musk’s projections of reaching 600 million daily active users by 2025 and 931 million DAU by 2028 highlight the importance of growth in winning over ad partners. However, X’s stagnant user growth since Musk’s takeover poses a significant obstacle to achieving these targets, making it difficult to attract advertisers based on audience size alone.
Future Strategies and Opportunities for X
In addition to focusing on user growth, X is exploring other avenues for revenue generation, such as X Payments and xAI’s Grok chatbot. While these initiatives may not result in explosive growth immediately, they offer potential opportunities for expanding X’s services and attracting new users. By diversifying its offerings and exploring innovative solutions, X can position itself as a more appealing platform for advertisers seeking to reach a diverse and engaged audience.
X’s efforts to maintain brand safety and reassure ad partners are crucial for its long-term success. By reengaging with organizations like GARM and focusing on user growth and audience expansion, X can overcome the challenges it currently faces in attracting advertisers and retaining revenue. With a strategic approach to brand safety, audience engagement, and innovative offerings, X has the potential to regain advertisers’ trust and establish itself as a valuable platform for brand promotions in the digital landscape.
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