X, formerly Twitter, is doubling down on its "Follower Objective" ads, also known as promoted accounts.
Elon Musk's social media platform will no longer allow advertisers to promote their accounts on X, a surprising decision considering that "Follower Objective" ads are responsible for more than $100 million annually in global revenue.
The decision to eliminate promoted accounts speak to X’s objective of prioritizing content formats and work by content creators.
Many clients use promoted accounts as the most foolproof way to acquire new followers, a key part of most brands’ digital strategies, and the unexpected change in X's advertising strategy is sure to affect the platform's short-term revenue.
Instead, X is now offering advertisers alternatives to reaching potential followers, such as engagement campaigns and reach campaigns.
Since Linda Yaccarino was appointed Twitter CEO, little has been done to bring stability to the company.
While Yaccarino claims that X is one step closer to breaking even, Elon Musk stated last month the company's ad revenue plunged about 50% year-over-year.
Whether X’s shift to a multimedia content-first platform will be enough to keep the company afloat despite a constant revenue loss is yet to be determined.
However, the decision to eliminate "Follower Objective" ads has come as a surprising decision to clients and is already being put into effect.
Edited by Nikola Djuric