X & Google’s Budding Relationship
By Connor O’Shea
The social media platform X, formerly known as Twitter, has caused quite a stir in the advertising industry by recently teaming up with the Google Display Network (GDN). This strategic move aims to breathe new life into X’s advertising revenue, particularly after experiencing a 59% decline earlier this year. In 2022, 90% of X revenue was generated through advertising – so this decline had a significant impact on profit. By entrusting ad space sales to Google Ads Display campaigns, X is poised to grant advertisers unparalleled access to its home feed inventory. Simultaneously, it stands to gain from Google’s advanced targeting capabilities, allowing for engagement with X’s impressive user base of 200 million daily users.
Over the past few years, advertisers have grappled with concerns related to X’s lenient ad guidelines, which exposed their campaigns to potentially offensive or unrestricted content, ultimately resulting in a drop in ad revenue. In a bid to reverse this trend, Elon Musk appointed a new CEO in May, who initiated discussions with Google regarding ad sales outsourcing. This collaboration harnesses the strengths of both companies, and the industry is eagerly anticipating the outcomes.
Here at Wahl Media, we’ve been closely monitoring the evolving advertising landscape and share the same concerns as fellow advertisers when it comes to X. This newfound partnership represents a monumental shift. By integrating Google Display’s robust targeting capabilities with X’s expansive user base, we can deliver campaigns that are not only more precise but also profoundly impactful, resonating effectively with our target audience. The possibilities stemming from this collaboration are boundless, and our team is enthusiastic about exploring the innovative ways it can elevate our advertising strategies.