Advertisers finally return to X in an effort to align with the Trump administration

Advertisers return to X, aiming for favor with Trump, despite hate content surge on the platform.

: Advertisers are returning to X, formerly known as Twitter, driven by prospects of favor with the Trump administration. Bloomberg's report indicates a projected $1.31 billion in U.S. ad sales, a 17.5% increase from last year. This resurgence is motivated by Musk's role in the administration and companies' fear of governmental scrutiny. Despite increased hate speech on X, some brands prioritize potential benefits over content concerns.

Elon Musk's acquisition and rebranding of Twitter to X prompted many advertisers to exit due to unchecked harmful content. However, the situation is reversing as advertisers return, motivated by political considerations rather than content improvements. Bloomberg reports X is expected to generate $1.31 billion in U.S. advertising sales in 2025, a 17.5% increase over the previous year, and $2.26 billion globally, up 16.5%. These numbers are still far below the $4.46 billion recorded in 2021, before Musk's involvement.

The association with the Trump administration, particularly Elon Musk's influential role, is a key factor in drawing advertisers back to X. Companies are weighing the transactional nature of the current administration, where financial contributions might yield favorable outcomes, against the risk of reprisals for non-compliance, which could include increased scrutiny by government agencies. In particular, advertisers like Interpublic Group, amid their merger attempts with Omnicom Group, reportedly resorted to ad expenditures on X, possibly to avoid administrative hurdles.

Linda Yaccarino, CEO of X, reportedly alerted potential advertisers about possible governmental scrutiny if they refrained from spending on the platform. This tactic appears effective, as companies eager to avoid complications return to advertising on X, accepting the risk of their ads appearing alongside controversial content. A study published in PLOS One illuminates the problematic status quo, illustrating a 50% increase in hate speech, raising questions about the true impetus behind the advertising rebound.

Despite declining platform popularity—activity plummeting by 22% post-election—X attracts advertisers seeking leverage with the government, amidst rivals Threads and Bluesky experiencing user surges. Large companies demonstrate readiness to prioritize political advantage over the predominant presence of hate content, valuing potential governmental closeness over brand reputation maintenance.

This willingness to overlook offensive content, accepting advertising risks for potential political favors, marks a significant departure from principled advertising and points to broader debates about ethics in corporate-government relationships. The implication is clear: aligning with political power is invaluable, even at the cost of brand integrity and association with controversial narratives.

Sources: Bloomberg, PLOS One, Wall Street Journal

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