Amazon has reportedly increased its ad spend on Elon Musk’s social media platform, X, in a major reversal of its previous stance. According to a report from The Wall Street Journal, Amazon CEO Andy Jassy was involved in the decision to allocate more advertising budget to X.
Previously, Amazon had pulled much of its advertising from X over a year ago due to controversies surrounding alleged hate speech on the platform. Despite calls for more moderation on X, Elon Musk, the owner of the platform, has stood firm and even confronted entities like Media Matters, which accused X of propagating hate speech and was subsequently sued by the platform.
Although ad buyers returning to X are spending less than they did before Elon Musk’s takeover in late 2022, their return is expected to help X improve its financial performance. Musk had previously denied reports that X was barely breaking even, but the influx of advertisers should provide a much-needed boost to the platform’s revenue.
In addition to ad revenue, Musk has expressed his vision for X to become a “super-app” similar to China’s WeChat. The platform has introduced a new service called X Money and a monetization program to incentivize creators to post on the platform. Other services are also in the works to diversify X’s sources of income.
The return of advertisers to X coincides with Elon Musk’s growing influence, particularly his close ties with U.S. President Donald Trump. This partnership could further solidify X’s position in the social media landscape and attract more advertisers looking to reach a broader audience.
As X continues to evolve and expand its offerings, the increased ad spend from Amazon signals a vote of confidence in the platform’s potential for growth and profitability. With Musk at the helm, X is poised to carve out a unique space in the social media industry and attract both users and advertisers alike.