Overview
- X, which began a phased global rollout Thursday, says the rebuilt system uses AI to refresh its retrieval and ranking so ads match posts by context and meaning.
- The new ad stack ties directly into xAI, with features in testing for select advertisers and a full release targeted for later this year.
- X says the redesign lowers campaign setup friction to make it easier to launch and control targeted buys, a playbook used by Google and Meta to boost spend.
- Pricing data points to a steep drop in demand, with average CPM on X at about $0.64 in 2026 after $1.05 in 2025 and $2.23 in 2024, far below major rivals.
- Executives say many top advertisers have returned even after Grok’s harmful image outputs triggered probes in the U.K. and Europe, and eMarketer projects ad revenue of $2.26 billion in 2025 rising to $2.46 billion in 2026.