X, formerly known as Twitter, has teamed up with the Google Display Network to address a significant drop in its advertising revenue earlier this year. In response to this decline, X has decided to outsource the sale of certain advertising space. Going forward, advertisers will have the option to access X’s home feed inventory through Google Ads Display campaigns, although the specific terms of the deal remain undisclosed.
Strategic Partnership Between X and Google – Reaching a Vast Audience Amidst Revenue Challenges
The significance of this partnership lies in the opportunity it presents to reach X’s extensive audience, which consists of over 200 million actively engaged daily users, using Google Ads’ familiar campaign setup and targeting tools. However, it’s important to note that X does not enforce the same stringent advertising guidelines and practices regarding ad placement, which means there is a risk that your campaign could appear alongside unrestricted or offensive content.
The timing of this partnership holds great importance. After Elon Musk assumed control of X last year, the platform saw a dramatic 59% drop in its advertising revenue in the United States. Considering that a substantial 90% of X’s income in 2022 was derived from advertising, this decline had a substantial negative effect on the company’s financial performance. To tackle this challenge, Musk took the step of appointing a new CEO, Linda Yaccarino, in May and has subsequently decided to enlist the assistance of Google, a major player in the advertising sector, in handling certain aspects of ad sales.
Unlocking Potential – The Impact and Challenges of the X-Google Partnership
Tom Ruff, Head of Social at the digital marketing agency Journey Further, believes that this partnership has immense potential, contingent on how the two companies share their data. Combining data from Google and X could create an exceptionally powerful marketing database, potentially revolutionizing the user journey. However, if the campaigns and data integration are not seamless, it could merely result in another ad placement, leading to diminished overall performance.
Google has officially acknowledged that X is taking steps to generate revenue from its home feed using Google Ad Manager, offering advertisers a chance to access a broader audience. However, Google underscores that advertisers will maintain the control to choose the specific websites and applications where their advertisements are displayed. Additionally, any publisher engaged in this partnership must comply with Google’s publisher policies.
