It seems that X’s efforts to win back advertisers are not going great, with the platform now offering $250 in ad credit for any SMB that spends $1,000 on X ads over the next month.
More than eight in 10 active X customers are SMBs—and today we’re enabling more of them to experience the power of X Ads.
We’re 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.For more details…
— Business (@XBusiness) August 23, 2023
The offer feels a little desperate, and a little like X’s claims that its ad business is looking much healthier are not entirely accurate, as it seeks to win back the 50% of ad revenue that it’s lost since Elon Musk purchased the app.
In a recent interview with CNBC, X CEO Linda Yaccarino said that the company is “close to breaking even”, as more advertisers resume spending in the recently renamed app, while also noting that the controversial rebrand has actually been popular among users and partners.
Analysis by ad tech platform MediaRadar also found that many big brands are gradually resuming their regular X spend, though over a third of its major partners, including AT&T, Disney, and Coca-Cola, are still holding off.
So X is, seemingly, winning back some advertiser faith. But the fact that it’s having to offer $250 ad credits to entice more interest would suggest that things aren’t going as well as X might have hoped.
Indeed, according to a recent poll on our LinkedIn page, many advertisers are still wary, with 87% of almost 1,300 poll participants indicating that they have no plans to take up X ads.
Could ad credits get them back to the app? And if so, will they see good results, which will then prompt further X ad spend?
It’s hard to tell whether X ads have improved, because while X continues to tout its various achievements, most of those claims relate to old updates and additions that it’s pushed out or tweaked, while it’s also continued to make misleading statements about the previous Twitter ad systems, and flaws in its approach.
Back in April, for example, X owner Elon Musk lamented the lack of keyword targeting for X ads, which he criticized as a “mind-blowing” failure of past management. Except, Twitter did have keyword targeting for ads, ten years ago, but it depreciated it due to poor performance.
In this context, it’s hard to know what, if anything, has actually improved in X’s ad system, though X continues to claim that it’s improving ad performance, including targeting options.
Maybe it has, and maybe, as you make your holiday push, it could be worth taking up an extra $250 in X ad credits to see what results you get.
X’s ad credits, which have to be redeemed within 30 days, will expire on December 31, 2023. Awarded credits can only be used to purchase X Ads, and can’t be redeemed for cash payouts.
Also, there’s this note in the terms and conditions:
“If User’s ads account currency differs from the currency referenced above, an equivalent value of the Credits will be applied in User’s account currency (the rate of exchange shall be determined in X’s sole and absolute discretion).”
Except there’s no currency referenced above. I assume they mean in the post.
Should be fine.