X Shuts Down $100M Promoted Accounts Ad Business

X Shuts Down $100M Promoted Accounts Ad Business

X, formerly known as Twitter, has announced that it will no longer offer advertisers the ability to promote their accounts within the platform’s timeline to gain new followers. This decision comes as part of X’s efforts to optimize the user experience and prioritize different content formats.

Promoted accounts, also known as “Follower Objective” ads, have been generating over $100 million in annual global revenue for X. These ads appear as text-based posts within users’ timelines, featuring a “Follow” button for the promoted account. While this ad format has been a staple on the platform, it lacks the multimedia capabilities that X is focusing on, such as video content.

X’s decision to deprecate the Followers Objective ad unit was communicated to clients in an email on August 10. The company expressed its intention to identify alternative methods for clients to achieve their goals. Although the change was driven by X’s product group and not solely by revenue considerations, it has significant implications for advertisers who relied on promoted follower ads to target specific audiences with precision.

While the promoted follower ads constitute a small portion of X’s total ad revenue, this decision is part of a broader effort by the company to prioritize new content formats and products. It aligns with X’s strategy to evolve and adapt its offerings, even if it means sacrificing short-term revenue gains. This move follows reports of X facing challenges in terms of ad revenue and financial profitability.

As X continues to refine its business model and product offerings, advertisers will need to explore alternative ad units, such as engagement campaigns and reach campaigns, to reach their target audiences effectively. The decision to deprecate promoted accounts showcases X’s commitment to reshaping its platform for the future while addressing its financial challenges.

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