After losing about 50% of its advertising revenue since Elon Musk purchased the app, X is trying to lure more advertisers back to its platform by offering a “one-time ad credit of $250 USD” to every small business that spends $1,000 or more on a new campaign over the next month, according to a recent company tweet.
“More than eight in 10 active X customers are SMBs,” the company wrote on its app. “And today we’re enabling more of them to experience the power of X Ads.”
Last month, ad-tech platform MediaRadar reported that ad spending across Twitter’s top 10 ad categories was down an average 71% through the first six months of 2023 compared to the same period a year prior.
Recently, X CEO Linda Yaccarino told CNBC that some of those top advertisers have come back to the platform -- including Coca-Cola, State Farm and Visa -- since the platform’s rebrand as an “everything app,” although it is unclear whether they are investing the same amount of ad spend.
As X awaits the return of more major brands to the app, this new offer seems to be intended to persuade small and medium-sized brands to commit more ad spend to the renamed and rebranded app.
The X Ads credits will expire on December 31, 2023, the company states in its terms and conditions. Awarded credits can only be used to purchase X Ads and cannot be redeemed for cash payouts.