Forecasters See Tough Times Ahead for X’s Ad Business

“When X folded into xAI, it was an indication that subscription revenue was going to become much more important than ad revenue,” Lou Paskalis, chief strategy officer of Ad Fontes Media, told ADWEEK.

By pushing into new areas, such as hosting job postings and offering financial services through a partnership with Visa, X has taken steps to transform itself into a so-called everything app under Musk’s ownership.

“This strategic pivot signals a shift in the company’s identity,” said MediaRadar’s Krepsik. “Ads may still remain a significant revenue driver, but this may be fast followed by subscriptions and emerging capabilities.”