X (formerly Twitter) boasts a massive user base of over 330 million active followers worldwide, offering an immense opportunity for businesses to reach potential customers through X advertising. This dynamic social platform caters to a diverse audience across age groups, interests, and geographical locations, enabling highly targeted marketing campaigns. X users value authenticity, real-time engagement, and being part of trending conversations, making it an ideal channel for building brand loyalty.
X advertising encompasses various options like Promoted Posts, Promoted Accounts, and Promoted Trends to amplify reach. Crafting an effective strategy involves setting clear objectives, creating compelling ad content, targeting the right followers, and leveraging advanced tactics like influencer partnerships and real-time interactions. Measuring success through key performance indicators like engagement rate, impressions, clicks, conversions, and cost per action is crucial for optimizing X ad campaigns and maximizing ROI.
Rebranding and Initial Changes
Twitter has rebranded itself to ‘X’, dropping the iconic bird logo and replacing it with the letter ‘X’. This rebranding is part of Elon Musk’s vision to turn ‘X’ into an “everything app” that would be a go-to destination for shopping, chatting, and entertainment. Twitter’s CEO Linda Yaccarino described ‘X’ as the “future state of unlimited interactivity” centered around audio, video, messaging, and payments/banking.
The intention behind the change to ‘X’ is to symbolize a new era for the former Twitter, where there is a limitless platform beyond just posting, messaging, and following other accounts. Elon Musk, the owner of X, has an apparent affinity for the letter X, as it was part of the name X.com for the payment company he founded (later renamed PayPal), and he also owns the aerospace company SpaceX.
Rebranding appears to be a trendy move, with over half of U.S. businesses attempting to rebrand within the last three years. In the case of X (Twitter), the rebrand is seen as a strategic move by Musk to:
- Create a broader platform of products
- Grab the attention of the media, consumers, and other stakeholders
- Drive rapid awareness of this shift
However, consumers generally dislike change due to uncertainty about outcomes, as brand names and identifiers serve as “cheat sheets” for their brains to associate or disassociate based on past experience. Elon Musk’s polarizing character and the changes he has made to the platform’s content moderation rules have added to the controversy surrounding the rebrand.
X (formerly Twitter) has also rebranded and made several key changes to its marketing product suite, including offering premium subscription tiers with expanded features.
Impact on Advertising Revenue
The rebranding of Twitter to X has had a significant impact on advertising revenue for the platform. While the content does not directly discuss the effects of rebranding on advertising success, it suggests that marketers have reduced their spending on a certain type of advertising (likely referring to “X” advertising) due to brand safety concerns. Despite this, ad spending on the platform has not dropped off significantly, with many existing advertisers still spending on X.
However, there has been a noticeable shift in advertising costs and performance on the platform. Previously, X’s CPMs (cost per thousand impressions) were around $3-$5, but since Elon Musk took over, they typically sit at $1-$2. Agency executives have reported varying CPM rates, with one seeing $6.50 for website/traffic ads and $0.16 for video ads to the U.S. with broad targeting on X. Another executive has observed CPMs ranging from $1.46 to $3.15 for promoted posts to audiences in Pakistan, while campaigns directed at the U.S. and U.K. see 4-5 times higher prices.
The impact on ad revenue is evident, with the top 10 advertisers reducing their spend by 70-97% in 2023 compared to 2022. One agency holding group reported a 38% drop in X investment year-on-year, along with a 17% audience decline when comparing September 2023 to September 2022.
In contrast, LinkedIn, the Microsoft-owned professional networking platform, saw a 10% increase in ad revenue to $4 billion in 2023. Insider Intelligence predicts LinkedIn’s ad spending will grow 15% to $4.6 billion in 2024, while X’s ad spending is expected to decline only 4.3% in 2024. LinkedIn is seen as an attractive platform for advertisers due to its professional and corporate focus, allowing for more targeted marketing.
| Platform | 2023 Ad Revenue | 2024 Ad Spending Forecast |
|---|---|---|
| $4 billion (10% increase) | $4.6 billion (15% growth) | |
| X | – | 4.3% decline |
While X’s ad revenue has shrunk, paid advertising remains a crucial component of digital marketing strategies. It allows for precise audience targeting, performance tracking, and optimization for maximum conversions and return on ad spend (ROAS). Paid advertising types like search ads, display ads, remarketing ads, shopping ads, and social ads offer unique benefits for reaching and engaging different audiences.
The key benefits of paid advertising include:
- Affordability
- Measurability
- Improved brand awareness
- Targeted audience reach
- Prospect re-engagement
- Faster ranking compared to organic search
Developing an effective paid advertising strategy is crucial, including defining goals, identifying the target audience, setting a budget, and selecting the right paid media channels. Essential metrics to track for paid ads include impressions, click-through rate (CTR), cost-per-click (CPC), conversions, cost-per-acquisition (CPA), and return on ad spend (ROAS). Paid advertising complements organic marketing efforts, providing quick visibility and targeted reach to drive comprehensive digital marketing success, especially for small businesses.
User Engagement and Growth
X boasts an impressive user base, with about 250 million people visiting the platform daily. In the United States alone, approximately 55 million individuals aged 12 and above utilize X. The platform has a strong appeal among younger demographics, with 42% of American users falling within the 18-29 age range. However, there exists a notable gender gap, as 26% of American men use X, compared to only 19% of women. In fact, X has the largest gender disparity among social platforms, with 60.9% of its users being male.
X’s user base is diverse in terms of income and education levels as well:
- 29% of Americans earning $100,000 or more annually use X.
- 29% of Americans with a college degree are X users.
The platform continues to experience significant growth, with an average of 1.7 million new users signing up daily. Video content plays a crucial role in user engagement, with 80% of user sessions involving video watching. Immersive video on X has garnered over 100 million daily active users, with more than half of them belonging to Gen Z.
X is also a popular source for news consumption, with 23% of Americans relying on the platform for news. However, there is a noticeable gender skew, as 62% of regular X news consumers are men.
User engagement on X is substantial, with the average user spending 30.9 minutes per day on the platform. Collectively, people spend over 8 billion active minutes on X daily. This high level of engagement translates into commercial opportunities, as 76% of X users have purchased a product after seeing a conversation about it on the platform.
With over 330 million active users worldwide, X offers businesses and marketers a vast audience to reach. The platform’s real-time, conversational nature makes it a valuable tool for engaging with customers, building brand loyalty, and participating in trending discussions.
Competitor Landscape
The digital advertising landscape is highly competitive, with major players vying for market share. The key players in the cross-platform and mobile advertising market include Apple, Amobee, AOL, InMobi, Millennial Media, Yahoo!, Microsoft Corporation, Google, Facebook, SAP SE, and Flytxt. As generative AI continues to advance, tech giants like Meta, TikTok, and YouTube are expected to compete fiercely to offer the ultimate AI-powered content feed, using AI filters to personalize and refine content for users.
In the streaming space, Spotify is likely to introduce a cheaper, ad-supported tier to boost subscriber growth, following the lead of other platforms like Netflix and Disney+. While Facebook’s rebrand to Meta seems to have worked, with the company reporting strong advertising revenue and growth, rebranding efforts don’t always succeed, as evidenced by Netflix’s failed attempt to rebrand its DVD-by-mail service as Qwikster, which led to customer and investor backlash.
For businesses looking to analyze their X (Twitter) performance and benchmark against competitors, tools like Metricool offer a comprehensive suite of features:
- Analytics
- Competitor analysis
- Reporting
- Looker Studio connector
- Hashtag tracking
- Social media planning
- Content approval system
- Link in bio
- AI assistant
- Chrome extension
- Inbox management
- Advertising management
Metricool supports analysis and management for various social media platforms, including Instagram, TikTok, YouTube, Twitter (X), Twitch, Google Business Profile, Facebook, Pinterest, and LinkedIn.
Competitor analysis involves examining competitors’ strategies and performance to gain insights that can help improve your own digital marketing strategy. Benchmarking compares your business metrics to those of your competitors to understand your brand’s position in the market. Key X (Twitter) metrics for benchmarking include:
- Engagement rate
- Impressions
- Follower growth
- Top tweets
- Top mentions
- Hashtag performance
- Video activity
- Audience data
Metricool’s competitor analysis tool allows you to track up to 100 competitors, analyze key metrics, and download data for further analysis. Insights from X (Twitter) competitor analysis can inform your content strategy, posting schedule, engagement tactics, and influencer partnerships.
Influencer Marketing on X
X is introducing a new “Creator Targeting” ad option that allows advertisers to run ads directly on influencers’ content within the platform. This builds on X’s existing “Amplify” program launched in 2015, which helped brands leverage video content. With Creator Targeting, ads seamlessly integrate into creators’ content, connecting brands with their target audience. Top creator MrBeast has already earned $260K within the first week of using this new feature.
X is ramping up its video offerings with exclusive content deals featuring personalities like Tucker Carlson, Don Lemon, Tulsi Gabbard, and Jim Rome. However, exclusively benefiting top creators may limit X’s positioning against platforms like YouTube, Instagram, and TikTok that have a broader range of influencers. If X expands Creator Targeting to support a more diverse range of creators, it may increase its chances of being recognized as a solid influencer marketing platform.
Leveraging influencer partnerships and engaging in real-time with audiences through creative use of X’s features like polls and Spaces can further enhance advertising effectiveness. Here are two case studies illustrating successful influencer marketing strategies on social media:
Case Study 1: How Company X Utilized Social Media to Generate Explosive Growth
- Leveraged targeted Facebook advertising to reach the right audience and increase brand awareness and lead generation.
- Built a strong community on Instagram through visually appealing content and user-generated content campaigns.
- Harnessed the power of influencer marketing on YouTube by partnering with popular creators in their industry.
Case Study 2: How Startup Y Leveraged Influencer Marketing on Social Media to Reach a Wide Audience
- Identified the right influencers who aligned with their brand and target audience.
- Built long-term relationships with influencers through regular collaborations.
- Created engaging and shareable content with influencers.
- Tracked and analyzed results to refine their influencer marketing strategy.
- Leveraged user-generated content to expand their reach and add authenticity.
Audience Demographics and Targeting
X’s diverse user base spans various age groups, genders, interests, and geographical locations, allowing for highly targeted marketing campaigns. Here are some key audience demographics and targeting insights for X advertising:
Age and Gender Demographics
- 42% of American X users fall within the 18-29 age range
- There is a notable gender gap, with 26% of American men using X, compared to only 19% of women
- X has the largest gender disparity among social platforms, with 60.9% of its users being male
Income and Education Levels
- 29% of Americans earning $100,000 or more annually use X
- 29% of Americans with a college degree are X users
Generational Appeal
Brands will make big plays to appeal to Gen Alpha, the next generation of digitally native consumers after Gen Z. With over 100 million daily active users of immersive video on X, more than half of them belonging to Gen Z, the platform presents a prime opportunity to connect with these younger, tech-savvy audiences.
Influencer Targeting
There are 4 main types of X influencers based on follower count:
- Mega influencers (over 1M followers)
- Macro influencers (100K-1M followers)
- Micro-influencers (10K-100K followers)
- Nano influencers (under 10K followers)
Brands can strategically partner with influencers across these tiers to reach niche audiences, build credibility, and drive engagement. Micro-influencers, in particular, often have highly engaged and loyal followings within specific interest areas.
Future Outlook and Predictions
The future of X advertising is marked by increased personalization, greater use of immersive technologies, evolving influencer marketing, and a focus on privacy and ethical practices. As the global Cross-Platform and Mobile Advertising market size is expected to reach USD 174,993.19 million by 2028, growing at a CAGR of 15.59% during the forecast period, businesses will need to stay ahead of the curve to capitalize on this lucrative opportunity.
By type, the Cross-Platform and Mobile Advertising market is segmented into Retail, Entertainment Industry, Banking, Insurance, and Others. By application, the market is segmented into:
- Content Delivery
- Reporting and Analytics Solutions
- Campaign Solutions
- Integrated Solutions
- Mobile Proximity Solution
- Others
Cross-platform and mobile advertising are considered sub-sections of online advertising, and these models exist in all markets, geographies, and organizations.
As the digital landscape evolves, performance marketers will integrate attention metrics like dwell time, scroll speed, and completion rates into their ROI calculations. This shift towards measuring genuine engagement will drive more impactful and relevant advertising strategies.
| Attention Metric | Description |
|---|---|
| Dwell Time | The amount of time a user spends actively engaged with an ad or content. |
| Scroll Speed | The speed at which a user scrolls through content, indicating interest or disinterest. |
| Completion Rate | The percentage of users who view an ad or content in its entirety. |
While it is still early to determine if Twitter’s rebrand to ‘X’ will be successful, and some experts are skeptical about the change, the platform’s evolution presents new opportunities for advertisers to connect with audiences in innovative ways.
Case Studies and Success Stories
Strategies for utilizing X influencer marketing include asking the influencer to temporarily take over your profile, hosting a contest with the influencer, and inviting the influencer for a behind-the-scenes preview of your brand. The content provides information about X advertising case studies and success stories, covering various advertising objectives that businesses can achieve with X Ads, including:
- Website traffic
- App installs
- Followers
- Engagements
- Video views
- Reach
- App re-engagements
- Website conversions
The content showcases several success stories from different regions, such as:
| Brand | Region | Objective |
|---|---|---|
| Jarir Bookstore | – | Website traffic |
| Carrefour Spain | Spain | Engagements |
| Sky Italia | Italy | Awareness |
| Christian Dior Couture | – | Website traffic |
| On | – | Website conversions |
The content encourages users to get started with X Ads and provides options to either get a link to the X Ads experience or sign up to receive more information. It also includes information about X’s business resources, developer resources, and help center.
The ‘Marketing’ section of the X website features ‘Insights’, ‘Success Stories’, ‘Solutions’, and ‘Collections’. There is a featured ‘Case study’ section about MILO’s #MILOHotVCold debate campaign. Users can filter case studies by industry (e.g., Alcohol, Automotive, B2B, etc.) and marketing objective (e.g., Drive Performance, Create Engagement, Measure Results, etc.). However, the current search returned 0 results, indicating no case studies are currently available.
Conclusion
X (formerly Twitter) presents a unique opportunity for businesses to tap into a massive, diverse, and highly engaged user base through its advertising offerings. With its real-time nature, conversational dynamics, and potential for influencer partnerships, the platform allows for highly targeted and personalized marketing campaigns. As the digital landscape continues to evolve, performance marketers must adapt their strategies, leveraging attention metrics and innovative advertising techniques to drive genuine engagement and impactful results.
While the rebranding and changes implemented by Elon Musk have sparked controversy and impacted advertising revenue, X remains a powerful tool in the digital marketing arsenal. By staying attuned to emerging trends, optimizing ad campaigns through data-driven insights, and exploring new avenues like Creator Targeting, businesses can effectively reach their target audiences and build brand loyalty on this dynamic social platform.
FAQs
What constitutes the essence of a digital marketing strategy?
The essence of a digital marketing strategy is to enhance brand recognition and attract new customers. Key strategies include SEO (Search Engine Optimization) and PPC (Pay-per-click advertising), which are instrumental in achieving these goals.
Why is advertising crucial in digital marketing?
Advertising is vital in digital marketing because it allows for precise targeting of specific audiences, which is essential for optimizing marketing efforts. By monitoring performance indicators such as Click-Through Rate (CTR) and Return on Ad Spend (ROAS), businesses can fine-tune their advertising campaigns to maximize conversions and achieve better returns on their investments.
What makes advertising an effective marketing strategy?
Advertising is highly effective because it enables businesses to connect with potential customers and persuade them to purchase products or services. A well-executed advertising campaign can significantly expand customer reach and enhance awareness of your business and brand.
How does digital marketing drive overall marketing strategy?
Digital marketing plays a pivotal role in optimizing the use of a marketing budget, securing more valuable leads, and improving the return on investment (ROI) for businesses. It is a core driver that significantly influences business growth, revenue, and overall success in the competitive market landscape.