Shift in Strategy: X Targets Small and Mid-Sized Businesses

In the midst of a boycott by major brands, X is redirecting its attention towards small- and mid-sized businesses in an attempt to revive its struggling advertising business.

Acknowledging the significance of small and medium enterprises as a driving force, the company stated, "We have underestimated their potential for far too long. It was always part of our plan, and now we are taking it even further."

This change in approach follows the decision of IBM Corp., Walt Disney Co., Apple Inc., and others to temporarily halt their advertising spending last week. The boycott stemmed from Elon Musk, owner of X, endorsing an anti-Semitic post. During an interview at the New York Times DealBook summit, Musk accused advertisers of "blackmail" and proclaimed that they were going to harm X.

Unapologetically, Musk repeatedly told these boycotting companies to "go f---" themselves.

For more details, read: Elon Musk lashes out at advertisers who boycott X: 'Go f--- yourself'

On Friday, Musk went on to criticize Disney for advertising on TikTok, along with other targeted brands.

In light of losing significant ad spending from major advertisers, X is now doubling down on investments to facilitate advertising expenditure by smaller players.

An analysis conducted by market researcher MediaRadar reveals that a majority of X's advertisers are already smaller businesses. From January to October 2023, out of approximately 15,700 advertisers, 79% spent less than $25,000 on X. Furthermore, 91% of X's total ad revenue comes from companies spending $99,000 or less, according to MediaRadar.