X (Twitter) switches to Interactive Ads

X is phasing out its Promoted Accounts advertising feature in preference for more engaging advertising formats that encourage interaction.

Considering the present condition of Elon Musk‘s X initiative, this decision might appear unconventional. However, unconventional decisions have become quite frequent for X nowadays.

According to a report from Axios, X, the platform formerly referred to as Twitter, is discontinuing its promotion of account advertisements. These ads allowed brands to showcase their accounts in users’ feeds with the goal of increasing their follower count.

For quite some time, Promoted accounts, alternatively labeled as “Follower Objective” ads, have served as a significant method for enhancing brand recognition. However, it seems that this idea no longer aligns with X’s fresh strategy, which will emphasize video and alternative interactive advertising formats.

“Promoted accounts stand as one of the original advertising layouts available on the platform. These advertisements present themselves as text-based posts visible on the X timeline, equipped with a ‘Follow’ button to promote the account. However, follower advertisements, though straightforward to market, remain unchanging. They don’t harness any of the multimedia features, such as video, that X is striving to embrace.”

The X team has been communicating the alteration to their customers, and it has already been implemented in certain regions. However, the exact timeline for completely discontinuing it as an advertising choice remains uncertain. X’s new strategy of prioritizing rapid progression is also causing a more disjointed introduction of each modification. This has frequently resulted in some aspects of the application not aligning seamlessly with others, with the change in the X name being a notable illustration of this phenomenon.

However, this is the consequence of swift transformation, making it difficult to pinpoint the exact point of finalization for each component. Nonetheless, the X team has verified that Follower Campaigns will be gradually discontinued in the near future. This move is part of a broader initiative aimed at giving greater importance to versatile content formats.

X has also communicated to advertising partners that they have the option to utilize alternative advertising units, such as engagement and reach objective promotions, which essentially serve the same purpose, excluding the direct emphasis on gaining followers.

Predicting the consequences of this removal is challenging, although Axios has indicated that Follower Campaigns presently contribute roughly $100 million per year to the platform. This amount constitutes only a portion of the $4.4 billion that X earned in 2022, largely through advertising expenditures. Nevertheless, considering X has experienced a 50% reduction in ad revenue following Elon’s assumption of control over the platform, any decline holds significance in its overarching endeavor to regain profitability.

However, Elon possesses a clear vision for his aspirations, and the newly appointed CEO, Linda Yaccarino, is also seeking to make her mark on the company. As part of this, certain formats will undergo reevaluation as they prepare for the next phase of development for the application.