X and Elon Musk Relaunch Advertising with AI

X and Elon Musk Relaunch Advertising with AI

X, the company led by Elon Musk, is looking to win back advertisers by launching a completely revamped advertising platform powered by artificial intelligence (AI). This rollout, which began on Thursday, marks a new phase in X's strategy to revitalize its advertising revenue.

In the early years of Musk's leadership, X struggled to increase its advertising revenue, prompting the company to explore other monetization avenues, such as AI and subscriptions. However, eMarketer's forecasts are optimistic: they estimate that X's advertising revenue could reach $2.26 billion in 2025 and $2.46 billion in 2026. Although these figures are still far from Twitter's in 2021, they indicate a positive trend.

A New Platform for a New Era

X has announced the gradual launch of its new advertising platform, which integrates modernized retrieval and ranking systems powered by AI. These innovations aim to provide advertisers with tools to create better-targeted and more effective campaigns. AI will play a key role in optimizing campaign results, enhancing the relevance of ad placements, and refining targeting.

Monique Pintarelli, global advertising head at xAI, emphasized the boldness and speed of this overhaul. According to her, few companies would have dared to rebuild their advertising platform so quickly. She added that this new advertising infrastructure will allow for smoother integration of ongoing innovations, promising advertisers regular improvements and new features.

AI as a Growth Lever for X

The reconstruction of X's advertising platform has been a priority for the company following its merger with xAI last year. AI has already proven its effectiveness in the tech industry, contributing to the growth of advertising revenue. Giants like Google and Meta have benefited from this "digital advertising boom," as reported by the New York Times. AI has enabled the automation of many aspects of marketing, from ad creation to targeting, and performance measurement.

This automation has also allowed small businesses to access the same tools as large corporations, thereby lowering the entry barrier to the advertising market. X hopes to capitalize on this trend to strengthen its position and offer competitive and innovative advertising solutions.