X’s Struggle with Brand Safety and Ad Partnerships

X recently decided to rejoin the World Federation of Advertisers’ Global Alliance for Responsible Media (GARM) in an effort to reassure ad partners of its commitment to brand safety. This move comes after a period of distancing from GARM following Elon Musk’s takeover of the platform. The departure of Twitter’s brand safety team and other cuts led to X backing away from its GARM commitments. However, X is now looking to reaffirm its dedication to GARM’s mission by upholding the guidelines set by the organization.

One of the primary challenges X faces is the perception that Musk’s more relaxed approach to content moderation has resulted in increased offensive and harmful content on the platform. This has led to concerns among advertisers about negative brand associations when placing ads on X. Third-party reports have suggested that hate speech and conspiracy theories are more prevalent on X, further deterring brands from investing in ad spend on the platform. Additionally, Musk’s own controversial statements and amplification of conspiracy theories contribute to the platform’s less-than-ideal image for brands.

Despite having 250 million daily active users, X’s reach pales in comparison to other social media platforms like Instagram, YouTube, Facebook, TikTok, and Snapchat. The platform’s stagnant user growth since Musk’s takeover compounds the issue, making it less appealing for advertisers looking for broader audience reach. X also falls short in driving direct response, which is crucial for many brands in their advertising efforts.

In order to turn the tide and attract more ad partners, X needs to focus on growing its user base. Musk had ambitious projections for reaching 600 million daily active users by 2025 and 931 million DAU by 2028. However, with the platform currently sitting at 250 million DAU and showing little growth, achieving these targets seems daunting. Despite this, X’s success in areas like X Payments and xAI’s Grok chatbot could provide opportunities for growth, albeit not at the scale Musk initially envisioned.

While participating in initiatives like GARM and strengthening brand safety partnerships are important steps for X, a combination of factors will be crucial in maximizing ad revenue. Growth, enhanced user engagement, and innovation in new features and services all play a role in making X a more attractive platform for advertisers. Rebuilding trust with ad partners and addressing concerns around brand safety are essential components in this journey.

X’s struggle with brand safety and ad partnerships is multifaceted and requires a holistic approach to overcome. By recommitting to GARM, focusing on user growth, and innovating in key areas, X can work towards revitalizing its ad business and regaining the trust of advertisers. While the road ahead may be challenging, it is essential for X to adapt and evolve in order to secure its position in the competitive social media landscape.