Amazon increasing ad spend on Elon Musk's X: report

Yesterday at 11:46 PM

Elon Musk’s social media platform, X, is reportedly seeing more ad spend from e-commerce giant Amazon.

As noted in a report from The Wall Street Journal, Amazon CEO Andy Jassy was reportedly involved in the decision.

Amazon’s previous stance:

Amazon pulled much of its advertising more than a year ago amidst controversies about alleged hate speech on X.
X owner Elon Musk has not bucked down against calls for more moderation on X.
Instead, Musk has confronted entities that have accused X of propagating hate speech.
These include media watchdog Media Matters, which was sued by X.

As noted by the WSJ, ad buyers that are returning to X are doing so at spending levels that are still notably lower than their spending prior to Elon Musk’s takeover in late 2022.
That being said, the return of advertisers should help X bolster its balance sheet.
Previous reports have alleged that Musk had sent an email to X staff stating that the company was “barely breaking even.”
Musk, however, denied that he sent such a message.
It should be noted that Twitter, prior to Musk’s takeover, was rarely profitable, with the company only making a profit in two of the eight years it was publicly held. Twitter lost money in six of the eight years it was publicly traded, as noted in a CNBC report.
The return of advertisers to X comes at a time when Musk is growing influence due to his close ties with U.S. President Donald Trump.

Musk has openly stated that he wants X to become a “super-app” like China’s WeChat.
X has taken steps towards this, with the company recently announcing an upcoming X Money service.
X has also launched a monetization program to incentivize creators to post on the platform.
Other, more notable services are also planned.

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