Amid a significant 59% decline in ad revenue, X, previously known as Twitter, has made a strategic move to outsource the sale of a portion of its advertising space by partnering with the Google Display Network. This collaboration seeks to revitalize X’s advertising income, and it presents intriguing opportunities for advertisers seeking to engage with X’s expansive user base of over 200 million daily active users. However, it’s important to note that X does not implement the same stringent advertising guidelines and content placement practices as other platforms, which could potentially expose campaigns to unrestricted or objectionable content.
Why This Matters:
This partnership offers advertisers a valuable chance to connect with X’s extensive and highly engaged audience through the familiar campaign setup and targeting tools provided by Google Ads Display campaigns. However, due to X’s relatively lax content guidelines, there is a risk that your campaigns might appear alongside content that does not align with your brand’s values or messaging.
Why Now?
X’s decision to outsource ad sales comes on the heels of a remarkable 59% decline in ad revenue in the United States, a trend that has significantly impacted the platform’s profitability. In 2022, a staggering 90% of X’s revenue was derived from advertising. In response to this concerning trend, X initiated a series of strategic moves, including the appointment of Linda Yaccarino as the new CEO in May. Now, by collaborating with one of the advertising industry’s behemoths, Google, X aims to address its ad revenue challenges.
The Power of This Collaboration:
Tom Ruff, Head of Social at digital marketing agency Journey Further, emphasized the immense potential of this partnership, contingent on how data-sharing between the two companies is managed. He highlighted the significance of Google combining its data with X, potentially creating an extraordinarily potent marketing database. This synergy could potentially revolutionize user journeys across search and display campaigns. However, Ruff cautioned that disjointed campaigns and data could undermine overall performance, emphasizing the importance of cohesive data utilization.
Google’s Perspective:
A Google spokesperson clarified the nature of the partnership, explaining that X has chosen to monetize its home feed with Google Ad Manager, mirroring a trend seen among several social apps and websites. The collaboration presents advertisers with an opportunity to reach a broader audience, but they retain the freedom to select the specific sites and apps where their ads will appear. Google emphasized that any publisher participating in such a partnership must adhere to its publisher policies to ensure ad placements align with acceptable standards and practices.
Source: Search Engine Land
