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| Twitter - X |
X, formerly known as Twitter, has recently made an announcement that will affect advertisers using the platform. They have decided to discontinue the option for advertisers to promote their accounts within the timeline to enhance the user experience and prioritize different content formats.
Promoted accounts, or "Follower Objective" ads, have been a significant source of revenue for X, generating over $100 million annually. These ads appear as text-based posts on users' timelines, featuring a "Follow" button for the promoted account. However, they need more multimedia capabilities that X is focusing on, especially video content.
X emailed its clients about their decision to deprecate the Followers Objective ad unit on August 10. While this change was primarily driven by X's product group rather than revenue concerns, it has significant implications for advertisers who relied on promoted follower ads to target specific audiences precisely.
Although the revenue generated from promoted follower ads is relatively small compared to X's total ad revenue, this decision is part of a broader effort by the company to prioritize new content formats and products. It aligns with X's strategy to evolve and adapt its offerings, even if it means sacrificing short-term revenue gains. This move follows reports of X facing ad revenue and financial profitability challenges.
As X continues to refine its business model and product offerings, advertisers will need to explore alternative ad units like engagement campaigns and reach campaigns to reach their target audiences effectively. X's decision to deprecate promoted accounts demonstrates the company's commitment to reshaping its platform for the future while addressing its financial challenges.