There have been conflicting stories out of the U.S. about X. In some, advertisers are dropping X advertising like its radioactive, while more optimistic stories claim that advertisers are actually returning. The platform formerly known as Twitter as been bleeding users and advertisers since Elon Musk took over in 2022, and in July 2023 rebranded it as X. The main concern for marketers has been brand safety because of X’s seeming lack of guardrails as extreme and offensive content increased under Musk’s ownership.

The platform’s bottom line has certainly taken a hit. In the first half of 2023, X’s revenue fell by nearly 40% from the same period the previous year, while the first six months of this year saw another 24% decrease in ad spend. A global survey by market research firm Kantar found that 26% of marketers plan to decrease their spend on X in 2025.

That said, the recent U.S. election may have some positive impact on X’s fortunes. Apparently, some of the major U.S. advertisers that had left X are returning to the platform but with lower ad spend than in the past. Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment have resumed ad spending on the platform, a move cynically believed by some to be a way to gain favour with Musk’s friend, the new U.S. president.

In Canada, agencies and advertisers are still proceeding with caution. Devon MacDonald, president of Cairns Oneil, has read similarly conflicting reports but has seen no new action from advertisers on the platform or with the agency’s clients. “We’re continuing to actively evaluate the platform for brand safety and effectiveness, including new controls and verification tools developed by X.”

MacDonald says the relationship between Elon Musk and President-Elect Trump is unique and there are reports about users leaving the platform for BlueSky due to this relationship and updated terms of service that change ownership and usage of posts from users. This will be interesting to monitor for potential reach and total audience of the platform.

He suggests the Musk-Trump relationship could result in a closer business connection. “Another dynamic that is interesting is Trump’s ownership of Truth Social, the X-like platform he launched after being banned from Twitter. With a political alliance between the owners of the two platforms, and a role in the incoming administration for Musk, a merger of the two or acquisition seems very likely.”

Sonia Carreno, president of IAB Canada, can’t comment on the ad spending motivations shared with her in confidence by agencies and marketers but says some incredible Canadian innovation has emerged to fill the vacuum of conversational networking platform. “Agencies and marketers continue to thread the needle of meeting their audiences where they are while ensuring their brands are aligned with suitable and safe content. Innovators have received the brief and are working hard to either present excellent solutions on existing platforms or develop net new platforms that are brand safe by design. It’s important to stay informed about positive progress that is being made by existing platforms to keep brands and audiences safe.”

Kate Dorofeeva, director of digital strategy at Involved Media says brand safety has been showing significant improvement on X and while the agency’s clients have expressed interest in testing the waters again, they are also proceeding with caution. “X has been actively working towards strengthening brand safety, performance, and analytics capabilities, but the financial investments from brands are far from where they used to be.”

She adds that while X has been talking up the growing adoption rate of a Gen Z audience and X becoming the number one news app in Canada, it will still be a slow uphill climb uphill for X to bring major players back into the market.

Some advertisers are slowly returning to X in the U.S., but it’s clear this is not a full comeback, according to Mat Horst, VP digital investment at Horizon Media. “Spending is still a fraction of what it was, and most brands are still hesitant about X’s trust levels which are far below platforms like Google Ads for example. That said, things could change with the recent news of a potential TikTok ban in Canada. If brands end up losing access to TikTok’s younger audience, they might start looking at X as a way to fill the gap.”

Horst says X has been trying to improve its ad products, and it’s less crowded than platforms like Meta or Google, something that could appeal to brands looking for new options. “For now, it’s too soon to say if X will become a go-to again. But as the digital landscape shifts, platforms that offer ways to reach key audiences without as much competition could get a second look.”

X does still command some volume of audience, so is still part of conversations. Concerns around content and controls on all the social platforms are the focus of initiatives like Omnicom’s CASA, where the agency worked with a number of platforms and channels to encourage transparency and control over where and how ads are showing.

Sean Dixon, head of digital at PHD, says he doesn’t believe either of the conflicting stories is true. While some advertisers did pull advertising in early days and subsequently returned to the platform, some never stopped. Some may have simply prioritized other channels ahead of X for their own reasons.

“Ultimately, the decision to advertise on X is entirely up to the advertiser,” says Dixon. “Our role has been to make sure that advertisers have the full picture when they opt to advertise on any platform, whether it’s X, Youtube or Meta. Most every platform, X included, have made significant strides around that transparency and control, so should an advertiser wish to advertise on the platform, they would do so with a good understanding of the risk, if any, involved.

“In terms of any observed changes in advertisers’ desire to be on the platform, we haven’t seen any dramatic shifts directly as a result of the election. The changes in reporting and control, brought in part by initiatives like CASA, were done to help alleviate concerns brands have about advertising around questionable content.”