In a significant strategic shift, X (Twitter) has opted for a partnership with Google Ad Manager to sell a portion of its advertising space. This decision comes after a substantial decline of 59% in the advertising revenue of the social platform earlier this year.
Opportunities for advertisers
Advertisers will have the opportunity to leverage X's home feed inventory through Google Ads Display campaigns. While the exact terms of the deal are still unknown, this collaboration provides access to X's impressive user base of over 200 million daily active users.
A crucial point for advertisers is the realization that X does not enforce the same strict advertising guidelines as other platforms. This means there is a risk that campaigns may be displayed alongside unwanted or even offensive content.
Decline in advertising revenue and strategic changes by Elon Musk
After the acquisition of X by Elon Musk last year, advertising revenues declined significantly. In 2022, ads accounted for 90% of X's total revenue, which had a major impact on profits. To address this issue, the company has implemented several strategic changes. In May, Linda Yaccarino took over as the new CEO. Additionally, X has now entered into a partnership with Google Ad Manager.
The potential of this collaboration is enormous, says Tom Ruff, Head of Social at digital marketing agency Journey Further. "If Google and X combine their data, this could become the most powerful marketing database ever. It will be interesting to see how this develops."
What does Google say about this?
A spokesperson for Google told Ad Age: "Like many social apps and websites, X has signed up to monetize its home feed with Google Ad Manager. This gives our advertisers the opportunity to reach a broader audience, but they can still choose on which sites and apps their ads will be displayed. Any publisher participating in this type of partnership must comply with our publisher guidelines."
For more information about display advertising, please refer to the
from Google.