Major Brands Resume Advertising On Musk's X Amid Legal Pressure

Major brands are making a cautious return to advertising on Elon Musk‘s social media platform X.

What Happened: According to multiple marketing executives, companies are feeling the pressure to spend nominal amounts on advertising on X.

This move comes in the wake of Musk’s influential role in the Trump administration and his legal action against entities that stopped advertising following his $44bn acquisition of the platform in 2022.

Recently, X added more companies to its lawsuit, including Shell, Nestlé, Pinterest, and Lego. Musk’s AI group xAi acquired X in a deal that valued the platform at $45bn. The plan is to integrate the data, models, and talent of both entities. Investors have shown a positive response to Musk’s cost-cutting strategy and rising revenues.

Also Read: Elon Musk Acquires His Own Social Media Platform X Through xAI In $33 Billion Deal, Says Combined Entity Now Worth $80 Billion

According to the report by Financial Times, Musk, along with X CEO Linda Yaccarino, is working towards restoring the advertising revenues to 2022 levels. Emarketer data suggests a rise in X’s revenue to $2.3bn this year, marking an increase from $1.9bn the previous year.

Despite a 2% drop in US ad spend on X in the first two months of 2025, major ad agencies such as WPP, Omnicom, Interpublic Group, and Publicis have agreed to set annual spending targets with X.

Why It Matters: The advertising industry’s concerns have heightened following X’s federal antitrust lawsuit against the Global Alliance for Responsible Media, accusing them of an “illegal boycott”.

This move indicates a potential shift in the power dynamics between social media platforms and advertisers, with the latter now seemingly compelled to spend on platforms to avoid legal repercussions.

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