Elon Musk’s social media platform, X (formerly Twitter), is facing a significant drop in advertising revenue in 2025, according to a report by market research firm Kantar. The report predicts a 26% decline in advertiser spending on X, marking the largest recorded withdrawal from any major global advertising platform to date.
The decline is attributed to a sharp decrease in advertiser trust since Musk’s acquisition of the platform. In 2022, when the platform was still known as Twitter, advertisers’ trust stood at 22%. However, this trust plummeted to 12% by 2024. Gonca Bubani, Kantar’s Global Thought Leadership Director, believes a reversal of this trend is unlikely due to X’s unpredictable nature and its struggles with brand safety.
Kantar’s report highlights X’s lagging performance compared to competitors in terms of brand safety. Only 4% of advertisers believe advertising on X guarantees brand safety, while Google boasts a 39% trust rating. This concern is amplified by Musk’s recent controversial actions, including sharing a contentious video on X, further eroding advertiser confidence.
Musk’s legal battles with advertisers haven’t helped. Earlier this month, he filed a lawsuit against a group of advertisers, accusing them of breaching federal antitrust laws by withholding billions in ad revenue. This move has further alienated advertisers who are hesitant to associate with a platform that sues them for choosing not to advertise there.
The anticipated reduction in ad spend is a significant blow to X, which has been struggling with trust issues since Musk’s takeover. The platform’s unpredictable nature and concerns about brand safety have become major deterrents for advertisers. This development underscores the importance of brand safety in advertising decisions and could influence future trends in the industry.
