Why Big Brands Are Spending Less on X: Insights from the Advertising World

Overview of X's Financial Landscape

According to Emarketer, X's revenue is projected to rise to $2.3 billion this year, up from $1.9 billion last year. However, back in 2022, when the platform was still known as Twitter and under Musk's ownership, it generated $4.1 billion in global sales.

Advertising Trends on X

In the first two months of 2025, total US ad spend on X saw a 2% decline compared to the previous year, despite the return of major brands like Hulu and Unilever. Notably, American Express rejoined the platform, yet its ad spending has plummeted by about 80% compared to the first quarter of 2022.

Major Ad Agencies' Strategies

Recently, four major advertising agencies—WPP, Omnicom, Interpublic Group, and Publicis—have either finalized or are negotiating upfront deals with X. These agreements involve advertisers committing to purchase advertising slots in advance.

Legal Concerns in the Advertising Industry

The advertising industry is on edge following X's federal antitrust lawsuit against the Global Alliance for Responsible Media, which accuses various brands and ad agencies, including Unilever, of orchestrating an “illegal boycott” under the pretense of a brand safety initiative. This lawsuit has raised concerns among advertising professionals, particularly at WPP’s GroupM, about the implications of their communications regarding X.

Additionally, a planned $13 billion merger between Omnicom and Interpublic is facing delays due to further inquiries from a US regulatory body, adding another layer of uncertainty in the advertising landscape.