Social media platform X, previously known as Twitter, has decided to halt the promotion of advertisers’ accounts within user timelines for the purpose of attracting new followers, according to a report from Axios on Tuesday, which references a communication sent to advertising clients.
The feature known as promoted accounts, or “Follower Objective” ads, is a significant revenue source for X, reportedly generating over $100 million (approximately Rs. 831 crore) each year on a global scale.
A request for comment from X to Reuters did not elicit a response.
Advertisers have typically utilized promoted follower ads to enhance their presence on the platform and engage targeted demographics.
CEO Linda Yaccarino, who took the helm on June 5 and previously served as the advertising chief at NBCUniversal, has been actively working to reshape the company’s image and to win back advertisers who departed following changes made by Elon Musk.
Earlier this month, X faced a fine of $350,000 (nearly Rs. 3 crore) imposed by the U.S. Court of Appeals for the District of Columbia Circuit, citing the company’s delay in complying with a request from the U.S. special counsel investigating Donald Trump. The investigation included a search warrant for Trump’s account acquired in January.
In July, Musk announced that X had achieved a “new high” in monthly users, sharing data that indicated the count surpassed 540 million.
Musk’s announcement regarding user statistics came amid ongoing organizational shifts at the company and efforts to recover advertising revenue, which has seen a decline in recent months.
Prior to Musk’s acquisition, Twitter reported having 229 million monthly active users in May 2022. Musk later stated in November that X had around 259.4 million daily active users.
© Thomson Reuters 2023
