{"id":94579,"date":"2023-08-25T13:59:49","date_gmt":"2023-08-25T13:59:49","guid":{"rendered":"https:\/\/www.ghanamma.com\/2023\/08\/25\/x-tries-to-lure-back-advertisers-with-new-250-ad-credit\/"},"modified":"2023-08-25T13:59:49","modified_gmt":"2023-08-25T13:59:49","slug":"x-tries-to-lure-back-advertisers-with-new-250-ad-credit","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2023\/08\/25\/x-tries-to-lure-back-advertisers-with-new-250-ad-credit\/","title":{"rendered":"X tries to lure back advertisers with new $250 ad credit"},"content":{"rendered":"

<\/p>\n

\n

X, the company formerly known as Twitter, has a new initiative aimed at luring smaller businesses to advertise on its platform. The company announced<\/a> on Wednesday it would offer a one-time ad credit of $250 to select businesses when they spend $1,000 or more on new ad campaigns over the next 30 days.<\/p>\n

In its post, X touted that more than eight in 10 active X customers were small to medium-sized businesses (SMBs) \u2014 the segment of the market where X is directing its new promotion. In a related FAQ<\/a>, X says the ad credits will expire on December 31 of the year they were issued and may be subject to a minimum spend.<\/p>\n

\n
\n

More than eight in 10 active X customers are SMBs\u2014and today we\u2019re enabling more of them to experience the power of X Ads.
We\u2019re offering a one-time ad credit of $250 USD when select businesses spend $1,000 USD or more on a new campaign within the next 30 days.<\/p>\n

For more details\u2026<\/p>\n

\u2014 Business (@XBusiness) August 23, 2023<\/a><\/p>\n<\/blockquote>\n<\/div>\n

The announcement follows an interview that X CEO Linda Yaccarino recently did with CNBC where she broadly discussed X\u2019s future plans. She told the outlet that X was integrating AI-powered ad tech that lets brands choose how careful they want to be about the kinds of content their ads are placed alongside. The ad slots that are less conservative would be sold at a discount.<\/p>\n

Yaccarino also highlighted advertisers that were returning to X, including Coca-Cola and State Farm, after Elon Musk\u2019s chaotic takeover of the company had\u00a0led many major advertisers to depart or at least re-evaluate their ad spend.<\/p>\n

Despite Yaccarino\u2019s assurances, the reality of the situation is that Twitter\/X advertising revenue has been on the decline. According to a June piece by The New York Times, Twitter\/X\u2019s U.S. advertising revenue for the five weeks from April 1 to the first week of May was $88 million \u2014 a drop of 59% year-over-year, the report said, citing internal documents the outlet had obtained. In addition, Twitter\/X had fallen short of U.S. weekly sales projections by as much as 30% on a regular basis, it noted.<\/p>\n

Even X owner Musk has talked about the ad revenue decline, posting just last month<\/a> that X was still seeing negative cash flow due to a roughly 50% drop in ad revenue and heavy debt.<\/p>\n

Surprisingly, Yaccarino claimed only a month later that X was \u201cpretty close to breaking even,\u201d crediting X\u2019s API, data licensing and subscription businesses as aiding with that, alongside advertising as helping reach that goal.<\/p>\n

While ad credits are a common business practice, it\u2019s clear that in X\u2019s case, it\u2019s more in need of a promotion to give brands a little push.<\/p>\n<\/div>\n