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Executive Summary:
X, formerly Twitter, has launched a revamped version of its Ads platform aimed at attracting small and medium-sized businesses (SMBs) by enhancing targeting and automation features. The new platform, currently available to select advertisers, leverages AI for increased targeting efficiency and allows advertisers to set cost-per-action goals to help maximize profitability. New features include bid optimization, automatic tracking pixel creation, one-click direct message support, and AI-powered “Auto Targeting” that utilizes internal engagement data for optimized ad delivery.
This update comes amid efforts to recover ad revenue lost after Elon Musk’s 2022 acquisition, which saw an 80% decline in ad sales and a significant loss in brand equity. Additionally, a recent Kantar report highlights that over a quarter of global marketers plan to reduce their ad spend on X. Under new marketing leadership with Angela Zepeda as the first global head of marketing, X aims to restore advertiser trust and attract SMBs with an AI-powered platform that aligns with the industry’s shift toward automation and data-driven ad placement.
