Elon Musk-owned social media platform X is on track to record its first year of advertising revenue growth since the billionaire acquired the company in 2022, according to data released Wednesday by research firm Emarketer.
In 2025, X’s U.S. ad revenue is projected to grow by 17.5% to $1.31 billion, while global ad sales are expected to rise 16.5% to $2.26 billion. The anticipated growth comes amid Musk’s expanding influence in the Trump administration, where he holds a key role in the U.S. Department of Government Efficiency.
“Some of this year’s growth is also being driven by fear. Many advertisers may see spending on X as a necessary cost of doing business to avoid potential legal or financial repercussions,” said Jasmine Enberg, principal analyst at Emarketer. She added that X has succeeded in attracting small- and medium-sized businesses, a segment it previously struggled with.
Despite the projected gains, X’s advertising revenue remains below its pre-acquisition levels. In 2021, when X was publicly traded, the company reported ad revenue of $4.51 billion. Since Musk’s takeover and the platform’s rebranding, ad sales have faced fluctuations due to shifting content policies and advertiser concerns.
X faces stiff competition from other social platforms such as Instagram, owned by Meta Platforms, and TikTok, as companies seek a greater share of the digital advertising market. The sector’s growth could also be impacted by U.S. tariffs and economic uncertainty, according to analysts.
On Monday, brokerage firm MoffettNathanson lowered its U.S. advertising growth forecast from 6.9% to just over 5.8%, citing instability caused by recent federal policy shifts. “The whiplash of tariff announcements and federal job cuts has created heightened uncertainty for businesses and markets alike,” the firm stated.
As a private company, X does not publicly disclose financial data. The company has yet to comment on the Emarketer report. In 2023, X appointed former NBCUniversal advertising chief Linda Yaccarino as its CEO in a bid to rebuild relationships with advertisers and stabilize revenue streams.
