X Unveils AI-driven Ads platform to attract advertisers
By Oluwaseyi Lawal
X has rolled out an updated version of its Ads platform aimed at attracting more small businesses and improving ad performance.
The company announced the “entirely new X Ads platform” through a social media post, revealing that it’s currently available to “select new advertisers.”
The platform leverages AI technology to enhance targeting precision, allowing advertisers to set their preferred cost per action to help maximize profitability for small and medium-sized businesses.
The revamped platform introduces features like bid optimization for brands’ target return on investment, automatic creation of tracking pixels for better measurement, one-click direct message support, and AI-driven “Auto Targeting” that uses internal engagement data to optimize ad delivery.
These updates align with recent trends among social media competitors who have been focusing on automated ad creation, targeting, and search capabilities using AI-powered systems. These tools allow advertisers to tap into platforms’ internal data to reach new audiences more efficiently and maximize ad spend with less manual effort.
The release comes as X seeks to boost ad revenue, which has dropped by about 80% since Elon Musk’s 2022 acquisition, resulting in a significant loss of brand equity. Amid declining trust from major advertisers, with 26% of global marketers planning to reduce ad spending on X, the platform is now targeting smaller brands to rebuild its reputation.
The updated ad platform may also reflect the influence of Angela Zepeda, the first global head of marketing appointed by X since Musk’s takeover. CEO Linda Yaccarino noted that Zepeda’s hiring would play a key role in driving the company’s ongoing transformation.
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