Major brands are rushing back to X following Trump’s election victory, signaling a seismic shift in advertising strategies and political alignments.
This is a massive win for Elon and free speech.
At a Glance
- Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment resume advertising on X
- Advertising spending on X down 98% from January to September compared to 2023
- X experiences record 46.5 million visits the day after the election
- Trump’s victory may influence advertisers’ return due to Musk’s connections with the president-elect
- X adopts long-tail advertiser strategy, attracting new brands to less competitive ad spaces
Trump’s Victory Sparks Advertising Resurgence on X
In a dramatic turn of events, major companies are flocking back to X following President-elect Donald Trump’s election victory. Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment have resumed advertising on the platform after previously withdrawing due to content concerns. This sudden shift underscores the profound impact of political outcomes on corporate advertising strategies.
The return of these advertising giants to X is not without caution. From January to September, these companies spent approximately $3.3 million on the platform, marking a staggering 98% decrease from the same period in 2023. This hesitant re-entry suggests a calculated approach, balancing the potential benefits of reaching X’s audience with the platform’s controversial reputation.
X’s Record-Breaking Traffic and Strategic Advantages
X’s relevance in the current political climate was undeniably demonstrated the day after the election when the platform experienced a record-breaking 46.5 million visits – the highest traffic in the past year. This surge in user engagement highlights X’s unique position as a hub for political discourse and news dissemination.
This strategic advantage hasn’t gone unnoticed by advertisers. The platform’s direct line to the president-elect through its owner, Elon Musk, presents a unique opportunity for companies seeking to align themselves with the new administration and America’s rediscovery of freedom of speech.
X’s Evolving Advertiser Landscape
As major brands cautiously return, X’s advertising landscape is undergoing a significant transformation. Current top advertisers on the platform include lesser-known names such as Karma Shopping, Canles Shoes, and Kueez Entertainment. This shift suggests a strategic pivot towards a long-tail advertiser model, providing opportunities for new and emerging brands in a less competitive advertising space.
“This suggests that X might move to a long-tail advertiser strategy,” Meghan Fraze, chief product officer of MediaRadar said.
This strategy could prove beneficial for both X and advertisers. New brands gain access to a significant audience without facing intense competition from industry giants, while X diversifies its advertising base, potentially leading to more stable revenue streams.
The Trump Factor and X’s Future
Elon Musk’s belief that a Trump victory would lead to the lifting of the advertiser boycott seems to be materializing. The platform’s significant advantage in daily visits over competitors like Threads, Bluesky, and Truth Social during the election season further cements its position as a key player in the social media landscape.
As the political and advertising landscapes continue to evolve, X’s ability to maintain its user base while attracting a diverse range of advertisers will be crucial. The platform’s future success may hinge on its capacity to balance controversial content with advertiser-friendly spaces, all while navigating the complex political environment ushered in by Trump’s return to power.
This is a massive win for freedom of speech – but we should all remain vigilant. Who knows what comes next?
