**X Corp’s Post-Election Environment: Advertiser Comebacks, User Patterns, and Prospective Innovations**
At the beginning of 2025, Linda Yaccarino, CEO of X Corp. (previously Twitter), stepped onto the stage at the Consumer Electronics Show (CES) in Las Vegas to present a keynote speech that underscored the platform’s developing path. Her comments illuminated X’s status after a turbulent time characterized by advertiser withdrawals, waning user engagement, and considerable financial difficulties following Elon Musk’s acquisition of Twitter in 2022. While Yaccarino depicted a hopeful outlook for X’s revival, data from external sources and market experts point to a more complex scenario.
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### **Advertiser Withdrawals: A Complicated Revival**
Yaccarino asserted during her CES address that “90 percent of the advertisers” who had boycotted X due to brand safety worries have returned to the platform. This figure, while encouraging at first glance, lacks comprehensive validation. X did not supply further data to corroborate the statement, and the findings from marketing intelligence company Sensor Tower present a somewhat different picture.
As reported by Sensor Tower, by December 2024, 69 of the top 100 U.S. advertisers from October 2022 had stopped spending on X. This number marks a slight improvement from September 2024, when 72 advertisers had withdrawn. Nevertheless, the data implies that X may not be successfully attracting back its pre-acquisition advertisers in substantial amounts. Instead, the platform seems to be nurturing a fresh group of advertisers. Sensor Tower noted that 52 of the top 100 advertisers on X in December 2024 were newcomers to the platform, with brands like Temu representing 3 percent of the total U.S. ad expenditure on X in 2024.
Prominent brands such as Comcast, IBM, Disney, Warner Bros. Discovery, and Lionsgate Entertainment reportedly resumed their advertising on X following Donald Trump’s re-election in late 2024. Some analysts theorize that these brands were trying to gain favor with Musk, who is seen as a significant figure in the current political sphere. However, the overall financial implications of these returns remain unclear, particularly given X’s 72 percent decrease in valuation since Musk’s acquisition.
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### **User Engagement: A Diminishing Trend**
While Yaccarino conveyed confidence in X’s capability to enhance engagement in 2025, the platform grapples with considerable obstacles in reversing its diminishing user base. Sensor Tower revealed a 13 percent drop in global daily average users year-over-year during the last quarter of 2024. Even the U.S. presidential election, typically a period of heightened engagement, did not prevent the downward slide, with user activity declining by 6 percent from the quarter preceding the election to the quarter following it.
Further complicating X’s difficulties, competitor platforms like Bluesky and Threads experienced significant growth in the same timeframe. Bluesky’s user base expanded by 185 percent, while Threads enjoyed a 22 percent increase. These platforms seem to be luring users who are dissatisfied with X’s trajectory under Musk’s management.
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### **Innovation as a Forward Strategy**
In an effort to regain traction, X is relying on product innovation. Yaccarino pointed out several forthcoming features at CES, including an NFL portal and a new marketing tool dubbed TrendGenius. Characterized as the “holy grail” of advertising, TrendGenius aims to align ad campaigns with trending topics in real-time. Yaccarino also highlighted X’s AI assistant, Grok, and its long-anticipated payments solution, X Money, as essential launches for 2025.
However, the rollout of X Money has encountered delays. Initially promised by the end of 2024, the product has not yet surfaced, and X’s withdrawal of its money transmitter application in New York raises concerns about the practicality of a nationwide launch. Musk has previously mentioned that introducing X Money without a New York license would be “irrelevant,” leaving the timeline for this project uncertain.
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### **The TikTok Element**
One potential variable influencing X’s future is the ongoing legal dispute regarding a potential TikTok ban in the U.S. If the Supreme Court affirms the ban, X might experience an influx of younger users transitioning from TikTok. Yaccarino remarked that Gen Z is already a growing demographic on X, as shown by a recent Ad Age poll. However, advocates for free speech contend that TikTok has a robust First Amendment argument, creating uncertainty around the legal proceedings’ outcome.
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### **The Path Forward**
While Yaccarino’s enthusiasm at CES reflects X’s aspirations to reinvent itself, the platform’s recovery is far from assured. The return of advertisers, while significant, may not compensate for the loss of legacy brands. User engagement continues to dwindle, and competition from new platforms like Bluesky and Threads remains intense. X’s ability to innovate and attract new users will be crucial in determining whether it can reclaim its position in the social media arena.
As 2025
