Amazon and Apple may return to active advertising on X: how will this affect the advertising market?

Amazon and Apple may return to active advertising on X: how will this affect the advertising market?

3 minutes

Table of contents

In today’s social media world, the relationship between big companies and advertising platforms is constantly changing. According to the latest Wall Street Journal reports, Amazon and Apple are considering increasing their advertising spending on Elon Musk’s X platform. The information is causing significant interest in the marketing community and could be an important signal for other advertisers.

Resuming cooperation after a long boycott

Amazon significantly reduced its advertising activity on X over a year ago due to concerns about the spread of hate on the platform. Apple also stopped advertising completely at the end of 2023. However, now, according to the WSJ, both companies are reviewing their decisions to cooperate with X.

Elon Musk commented on the news in his post, expressing gratitude for the return of big brands to the platform. This could indicate a gradual recovery of advertisers’ trust in X.

Reasons for big brands to return

The WSJ report points to several reasons why advertisers are reconsidering their stance on X:

  • Changing political and social climate: Musk has become one of the most influential figures in the US political landscape, forcing companies to adapt their advertising strategies.
  • Improved content moderation: X CEO Linda Iaccarino noted that the platform has implemented new tools to ensure the safety of ads and prevent them from being placed next to inappropriate content.
  • Strategic partnerships: Several companies, including Beyond, have announced collaborations with X to promote their brands. This includes creating creative content and developing customer acquisition strategies.

Impact on the advertising market

The return of giants like Amazon and Apple could have several important implications for the advertising market, including impacting competition, pricing, and opportunities for brands.

  • Increased competition: The emergence of large players on platform X could encourage other companies that previously refrained from advertising. Marketers from various segments, including small, medium, and large businesses, may begin to view the platform as an effective channel for promotion. This could increase demand for advertising space and increase interest in creative advertising formats.
  • Increased advertising prices: The activation of large brands often leads to higher advertising costs due to the limited number of premium advertising spaces. Companies with smaller budgets may face the challenge of optimizing their campaigns or finding alternative advertising formats. At the same time, this may prompt the platform to develop more flexible rates and advertising solutions to attract all business segments.
  • Empowering Brands: With new content moderation tools and creative formats, X could become a more attractive platform for brands. Marketers can place their ads in a safe context, reducing the risk of reputational damage. In addition, X can offer personalized ad formats, interactive content, and new audience engagement mechanisms, which will increase the effectiveness of advertising campaigns.
  • Improving advertising infrastructure: The return of companies such as Amazon and Apple is likely to encourage X to invest in improving advertising technology. We can expect the emergence of more advanced analytical tools, new ad formats, and improved efficiency of ad auctions. This will contribute to creating a platform with a better user experience for both marketers and end users.

Conclusion

Amazon’s increased ad spend and Apple’s possible return to X indicate a gradual recovery of trust in the platform after a period of uncertainty. This opens up new opportunities for marketers and brands looking to effectively engage audiences in the world of social media. The resurgence of such major players is a signal to the market that social platforms remain key marketing tools.

Marketers should closely monitor changes in X policies and adapt their strategies to make the most of the platform. It is also important to consider new content moderation tools that can ensure safe advertising and improve its effectiveness.

The expansion of advertising budgets by Amazon and Apple may encourage other companies to reconsider their attitude to platform X and take advantage of its potential. This move is also an indicator of the importance of maintaining flexibility in digital marketing, responding to changes in the market and consumer preferences.

This article available in Ukrainian.

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